Amid rising trade tensions between the United States and China, major indexes on the New York Stock Exchange started mixed. The resumption of uncertainty regarding U.S.-China and European Union (EU) trade appears to have dampened investor sentiment.
As of 9:40 a.m. Eastern Time on the 2nd, the Dow Jones Industrial Average was trading at 42,102.83, down 167.24 points (0.40%) from the previous session on the New York Stock Exchange (NYSE). The Standard & Poor's (S&P) 500 index was down 4.72 points (0.08%) at 5,906.97. In contrast, the Nasdaq index was up 4.46 points (0.39%) at 19,188.23.
The overall mixed performance of the New York stock market is attributed to the perception that U.S.-China trade negotiations have entered a cooling phase again. China recently firmly denied the claim that the U.S. violated a temporary trade agreement. In fact, they hold that the U.S. has not complied with the agreement. This tension has been heightened recently after U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng agreed to delay most tariffs for 90 days in Geneva, Switzerland.
Additionally, U.S. President Donald Trump has announced plans to double the tariff on steel imports from 25% to 50%, reigniting trade conflicts with the EU. The EU stated, "This measure undermines the negotiation efforts" and noted that it would impose additional burdens on consumers and corporations on both sides.
On this day, most sectors are experiencing declines. Real estate is down 1.3%, finance by 0.9%, and industrial and utility sectors are falling by around 0.8%, while energy is up 0.9% and technology by 0.4%.
By sector, steel-related stocks are showing robust gains. Stock prices are rising due to the expectation that related companies will benefit from President Trump's policy to double steel tariffs. Cleveland-Cliffs shares climbed 27%, while Nucor and Steel Dynamics surged 11%.
In contrast, automotive-related stocks are declining. Rising costs of imported parts are expected to increase production expenses, reflecting concerns about deteriorating profitability. Shares of Stellantis fell by 3%, General Motors by 3%, and Ford by 2%.
European stock markets are also falling across the board. The Euro Stoxx 50 index is down 0.50%. Germany's DAX index is down 0.52%, the UK's FTSE is down 0.14%, and France's CAC 40 is down 0.54%.
Meanwhile, international oil prices are rising as OPEC+ has decided to gradually ease existing production cut policies. As of 9:40 a.m., the price of the near-month July futures of West Texas Intermediate (WTI) crude oil has surged 4.66% to $63.62 per barrel, while the price of Brent crude for August delivery, the global benchmark, has risen 4.32% to $65.49 per barrel.