Stock Market Live July 7: S&P 500 (VOO) Dives on Tariff, Debt, and “America Party” Worries
Key Points
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President Trump signed the Big, Beautiful Bill into law over the July 4 weekend.
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The President also promised multiple trade agreements will be signed this week.
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Monday Wrap-up
The Vanguard S&P 500 ETF closed at 570.55 Monday, down 0.7%.
Citi Has High Hopes for Nvidia and AI
Citigroup is raising its price target on S&P 500 component Nvidia (Nasdaq: NVDA) stock to $190 with a buy rating. The banker cites higher than expected “sovereign” AI demand, meaning more nation-states backing artificial intelligence projects within their borders, as driving semiconductor demand. By 2028, Citi expects the market for AI chips to grow to $563 billion, up from a prior expectation of $500 billion.
Nvidia stock is nonetheless down 0.9% today, and the Voo is now down 0.7%.
Trump's One Big Beautiful Bill Hurts Bond Prices
Treasury yields are inching higher after passage of the debt-adding “One Big Beautiful Bill,” which now has its own acronym: OBBB. As investors big more cautiously for government bonds, the 2-year T-bill is now yielding 3.886%, the 10-year 4.37%, and the 30-year 4.908%.
The Voo is falling further, now down 0.45%.
Tesla Tumbles
Tesla stock is reacting negatively to news of Elon Musk’s political ambitions. President Trump called the idea of starting a third party “ridiculous,” and investors seem to agree. Shares of the EV leader are down 7.8%.
The Voo opened 0.3% lower, and remains at that level.
This article will be updated throughout the day, so check back often for more daily updates.
It sounded like good news, but the stock market is reacting like it’s bad news: Over the weekend, President Trump and Commerce Secretary Howard Lutnick told reporters that tariffs — delayed by “90 days” three months ago — will in fact not “go into effect” until August 1. And for some countries, they may not go into effect at all!
Treasury Secretary Scott Bessent told CNBC this morning that the U.S. is in the process of signing several trade agreements with foreign countries, which may avoid or diminish the tariffs first announced in April. Other trade partners are being peppered with “letters” from the President urging them to “move things along” and get trade deals finalized soonest.
Offsetting this optimism, however, the President warned over the weekend that he might impose a new 10% tariff on countries with “anti-American policies.” In other news, the President signed his “big, beautiful bill” on July 4, setting the stage for further deficit spending and higher national debt. And the President continues to feud with Elon Musk, who announced over the weekend that he will form and back a new “America Party” to compete in elections with the established Democratic and Republican blocs.
Attempting to digest all this news, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is trading down 0.3% pre-market.
Analyst Calls
Wall Street is rushing back to work after the long holiday weekend. This morning, Raymond James upgraded shares of S&P 500 component company US Bancorp (NYSE: USB) to strong buy with a $57 price target. “We have increasing confidence that the bank will reach its targeted medium-term profitability metrics, driven by 200+ bp of positive operating leverage this year and 150+ bp of positive operating leverage in 2026,” said RJ.
In less positive news, Barclays Capital downgraded a pair of insurance companies this morning. Chubb Corporation (NYSE: CB) and Travelers (NYSE: TRV), both S&P 500 component companies, are both cut to equalweight.
William Blair downgraded Tesla (NYSE: TSLA) stock to market perform after the big, beautiful bill (see above) called for the $7,500 tax credit on new electric vehicle sales to terminate sooner than expected, on September 30, 2025. Moreover, the bill eliminates the need for traditional automakers to purchase clean energy credits from Tesla, eliminating a $2 billion-a-year high-margin revenue stream that Tesla has come to depend upon.
Joel South has been an avid investor and financial writer for over 15 years, publishing thousands of articles analyzing stocks, markets, and investment strategies across multiple leading financial media platforms. He spent 12 years at The Motley Fool, where he worked as an investment analyst and Bureau Chief before ascending to direct the Fool.com investing news desk, overseeing editorial operations and content strategy. During his tenure, Joel co-hosted an investing podcast and became a recognized voice in financial media through numerous TV and radio appearances discussing stock market trends and investment opportunities.
Currently serving as General Manager and Managing Editor at 24/7 Wall Street, Joel has published hundreds of in-depth analyses focusing on large-cap stocks, dividend-paying equities, and market-moving developments. His comprehensive coverage spans earnings previews, price predictions, and investment forecasts for major companies across all sectors—from technology giants and semiconductor manufacturers to consumer brands and financial institutions. Joel's expertise encompasses t fundamental analysis, options market interpretation, institutional investor behavior, and translating complex market dynamics into clear, actionable insights for individual investors.
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