Stock Futures Dip Amid Escalating Trade Tensions, HIVE Digital Leads Gainers

Stock futures declined after President Trump announced a 30% tariff on imports from Mexico and the EU. The biggest stock gainer was HIVE Digital (HIVE), which increased by 9%, likely due to its association with cryptocurrencies.

Stock futures declined on Friday following President Donald Trump's announcement of a 30% tariff on imports from Mexico and the European Union. The move, set to take effect on August 1, sent shockwaves through the market, with the Dow falling by 364 points, or 0.81%, as of midday. The broader S&P 500 fell by 0.41%, while the tech-heavy Nasdaq Composite dropped by 0.14%.

The announcement came as a surprise, with investors having largely shrugged off previous tariff threats. Trump's tariff announcement was part of a broader strategy to renegotiate trade agreements and address trade imbalances. The president cited unfair trade practices and the need to protect American jobs as the rationale behind the new tariffs.

The biggest stock gainer of the day was HIVE Digital (HIVE), which increased by 9%. This increase is likely due to the company's association with cryptocurrencies, which have seen significant growth and volatility in recent months. Other sectors, such as tech and industrials, also saw gains, with Nvidia (NVDA) and Palantir (PLTR) leading the way. However, the overall market sentiment remains cautious, with investors keeping a close eye on the potential impact of the tariffs on economic growth and business activity.

Analysts are divided on the potential impact of the tariffs. Some investors, such as Steve Sosnick at Interactive Brokers, believe that the market's blasé attitude towards tariff threats is misplaced and that the "TACO trade" (betting that Trump always chickens out) could prove profitable. Others, such as Jamie Dimon at JPMorgan Chase, are concerned about complacency in the market and the potential for tariffs to disrupt economic growth.

The S&P 500 and Nasdaq have pushed higher despite renewed tariff threats, buoyed by companies like Nvidia that have soared to record highs. The market gains have been driven by AI and tech stocks, with just five stocks contributing over half of the S&P 500's returns across the past month. However, the median S&P 500 company is trading about 12% below its peak in the past year, indicating a lack of broad-based market participation.

The tariff saga is far from over, with economists at ING noting that the US stance on protectionism remains unchanged. The market's fear gauge, the CBOE Volatility Index (VIX), has dropped significantly since April, reflecting a relative calm in the market. However, the tariff announcement has reignited uncertainty, and investors are awaiting more developments on the economic front.

References:
[1] https://www.cnn.com/2025/07/11/investing/us-stock-market
[2] https://www.cnbc.com/2025/07/09/stock-market-today-live-updates.html