Wall Street Pauses As Tariff Concerns Rise, Dollar Eyes Third Straight Gain: What's Moving Markets Monday?

U.S. equities traded sideways on Monday as investor sentiment wavered following President Donald Trump's weekend announcement of a sweeping 30% tariff on all imports from the European Union and Mexico, set to take effect August 1.

Investor sentiment was further clouded by inflation concerns ahead of Tuesday's consumer price index release. Economists anticipate an annual rise from 2.4% to 2.7%, suggesting that companies may be starting to pass on higher import costs to consumers.

The second-quarter earnings season for major U.S. banks kicks off Tuesday, with JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), Wells Fargo & Co. (NYSE:WFC), and BlackRock Inc. (NYSE:BLK) all slated to report results before the bell.

Among sectors, energy stocks lagged as oil prices dropped 1.5% to below $67.60 per barrel. The decline came after Trump stopped short of imposing new sanctions on Russian oil, disappointing markets that had anticipated a tougher stance. While Trump did threaten 100% secondary tariffs on Russian energy exports if a ceasefire isn’t ...