U.S. stock markets showed minor gains on Monday amidst news of tariffs and actions by the Federal Reserve. Meanwhile, cryptocurrency markets demonstrated strong performance, with Bitcoin setting new records.
Stocks Rise Amid Tariff Concerns
U.S. stock indices edged higher as investors focused on new tariffs and the Federal Reserve's actions. On July 14, the Dow Jones was up by 50 points, or 0.11%. The S&P 500 also gained 0.11%, while the NASDAQ rose by 0.32%.
Traders showed a lower risk appetite after President Donald Trump announced a 30% tariff on Mexico and the European Union, which will take effect on August 1. Both countries are key U.S. trading partners, pressuring market sentiment. Currently, both Mexico and the EU are pushing for lower tariff rates.
Bitcoin Sets New Records
Amidst the cautious sentiment in equities, cryptocurrency markets are showing strong performance. Bitcoin once again reached a record high, climbing to $123,091. This surge is driven by increasing demand for ETFs and rising allocations to corporate treasuries, continuing the Bitcoin bull run and positively impacting the altcoin market.
Criticism of the Federal Reserve
Pressure on the Federal Reserve intensified following discussions concerning its $2.5 billion renovation of its main building. Both the White House and potential contenders for the top position in the nation’s central bank criticized the agency regarding the proposed renovation of its Washington headquarters.
White House economic adviser Kevin Hassett condemned the plan, citing a $700 million cost overrun, stating that the administration will investigate further. Former Fed governor Kevin Warsh also criticized the proposal, calling the costs 'outrageous.'
With minor gains in the stock market and new records for Bitcoin, investor focus remains on political factors such as tariffs and the actions of the Federal Reserve, which may influence the further development of financial markets.
