Welcome to the new week, with plenty on the agenda.
U.S. stock futures dropped premarket Monday after President Donald Trump set steep new tariffs on Mexico and the E.U.; investors are watching bitcoin (BTCUSD) after it hit a record high this weekend; Fastenal (FAST) gained after the company posted better-than-expected earnings; Tesla (TSLA) shares rose after CEO Elon Musk said that he didn’t support merging the company with xAI, but that there would be a shareholder vote on whether to let the EV firm invest in his AI company.
Here’s what investors need to know today.
1. U.S. Stock Futures Fall as Trump Lays Out EU, Mexico Tariffs
U.S. stock futures pointed lower in premarket trading. Trump laid out new tariffs on the E.U. and Mexico, which we’ll discuss in more detail later on. Investors prepared for a big week of earnings and key inflation data later this week.
Dow Jones Industrial Average futures were recently 0.3% lower after the blue-chip index declined by 0.6% to end trading last week, All three major indexes turned lower for the week, pulled down by Friday’s declines. S&P 500 and Nasdaq futures were similarly lower. Yields on the 10-year Treasury note were unchanged at around 4.4%, while oil and gold futures moved higher.
2. Trump Sets 30% Tariffs on EU, Mexico
Trump announced plans to impose new 30% tariffs on Mexico and the European Union effective from Aug. 1. In a letter to the EU, Trump said he would consider bringing down tariffs if the bloc offers “complete, open Market Access to the United States, with no Tariff being charged to us.” His letter to Mexico said that the country has not done enough to secure the border with the U.S.
The E.U. said it would not retaliate straight away to the tariffs but would work to try to reach a deal before the Aug. 1 deadline, with European Commission President Ursula von der Leyen saying the bloc was ready to adopt “proportionate countermeasures if required.”
3. Bitcoin Touches Record High Ahead of ‘Crypto Week’
Investors are watching bitcoin (BTCUSD) after it powered to another record high over the weekend, moving above $122,000 before falling back below that level early today. The cryptocurrency last week hit its first record high since May.
Crypto-related stocks also surged, with Bitcoin treasury company Strategy (MSTR) rising 2% in premarket trading, while Coinbase Global (COIN) was up about 1%. Bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) were each up more than 3%.
Bitcoin’s rise comes ahead of “Crypto Week” in the House of Representatives, which is expected to include a vote on the GENIUS Act stablecoin legislation.
4. Fastenal Kicks off Earnings Season With Q2 Results
Industrial supplier Fastenal (FAST) posted a solid earnings report early Monday, opening a busy week of earnings set to be dominated by big banks but also tech giants like Netflix (NFLX). Fastenal reported second-quarter revenue of $2.08 billion, along with earnings per share of $0.29, narrowly topping analyst estimates compiled by Visible Alpha.
The company’s report effectively kicks off earnings season, with JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), Citigroup (C), Bank of America (BAC), Morgan Stanley (MS), and Goldman Sachs (GS) all set to report later this week.
5. Tesla Shares Rise as Musk Sees Shareholder Vote on xAI Investment
Tesla (TSLA) shares were higher by more than 1% in premarket trading. CEO Elon Musk said on his X social-media network that he didn’t support merging the electric vehicle company with xAI, the maker of the Grok chatbot. Musk also said in another post that there would be a shareholder vote on whether Tesla would be allowed to invest in xAI.
Musk last week said that Grok would likely be installed into Tesla vehicles in the coming weeks.
Nisha Gopalan and Aaron McDade contributed to this article.