US stocks lost ground, albeit modestly, on Friday (Saturday AEST) after President Donald Trump made clear that he will continue to threaten allies and foes with higher tariffs, reviving uncertainty about what lies ahead.
Higher tariffs ultimately increase the risk for economic growth, and strategists say that’s perhaps not yet reflected in markets as Trump’s August 1 “deadline” comes into sight.
“The higher tariffs go, the more the US risks adverse outcomes for activity and employment,” Morgan Stanley’s economics team said in a note. “We do not believe we are there yet and retain our view for a slow-growth, firm inflation outlook, but time will tell.”
Source: https://www.afr.com/markets/equity-markets/s-and-p-500-slips-even-as-mag-seven-extend-their-dominance-20250712-p5meec