Trump BRICS Tariff Dampens Mood After S&P 500 Record

US President Trump’s shifting trade policy and threat of steep new tariffs by August 1 unsettled investors, pushing Wall Street futures down around 0.4%. This follows a record finish for the S&P 500 on a holiday-shortened Friday. Asian markets dipped slightly, Treasury yields eased a basis point, and the dollar stayed near four-year lows. Oil prices dropped roughly 1% after OPEC+ unexpectedly boosted production and signalled further increases, pressuring US shale producers.

Equities

The FTSE 100 ended flat on Friday, holding steady despite wider concerns over UK fiscal policy and global trade uncertainty. It still managed a second consecutive weekly gain.

The FTSE 250 fell 0.7% and finished the week lower, reversing some of the strength seen earlier in the quarter. The midcap index had posted its strongest three-month performance in more than four years, but sentiment faded after the government watered down its planned welfare reforms, cutting less than £5 billion from the budget.

MJ Gleeson dropped 6.7% after it said full-year profit would come in at the lower end of expectations, blaming weak housing demand. The profit warning dragged on the wider homebuilding sector.

Vistry fell 2.8%, Taylor Wimpey dropped 1.6%, and Persimmon declined 1.3%. Moonpig was the worst performer on the FTSE 250, falling 8.7% after Deutsche Bank downgraded the stock. Anglo American, Glencore and Antofagasta all lost more than 1%, in line with weaker industrial metal prices. Atalaya Mining slid 3%.

Over in the US, equity markets closed higher in a shortened session ahead of the Fourth of July holiday. The S&P 500 rose 0.83% to a new record high of 6,279.36, while the Nasdaq climbed 1.02% to 20,601.10. The Dow added 0.77%, finishing just 0.41% below its all-time peak. Nvidia gained 1.3%, pushing its market value to $3.89 trillion and putting it within striking distance of overtaking Apple as the most valuable company ever.

Datadog jumped 14.9% after it was announced as a replacement for Juniper Networks in the S&P 500 index. Tripadvisor surged 16.7% following a Wall Street Journal report that activist investor Starboard Value had built a stake of more than 9% in the business.

Forex & Commodities

The US dollar remained weak at the start of the week, hovering close to multi-year lows as markets assessed the likelihood and timing of higher tariffs announced by President Trump.

The dollar fell to 0.7949 Swiss francs, nearing levels last seen in January 2015. It also slipped slightly against the euro, which held at $1.1767, just below last week’s peak. Sterling weakened 0.3% to $1.3615 but remained near a three-year high. Against the yen, the greenback reversed earlier losses, gaining 0.3% to 145.04.

The Australian dollar dropped 0.8% to $0.65 ahead of Tuesday’s Reserve Bank of Australia meeting, where markets expect a 25 basis point rate cut. Traders are looking for dovish forward guidance, with inflation softening and growth outlook uncertain. The New Zealand dollar slipped 0.7% to $0.601, with its central bank expected to hold rates steady on Wednesday, though a further cut later this year remains likely.

Gold prices fell 0.7% to $3,311 per ounce as Trump suggested several trade deals were close, dampening demand for safe-haven assets. Meanwhile, spot silver declined 0.9%, platinum shed 2.4%, and palladium dropped 1.9%.

Oil prices also weakened after OPEC+ unexpectedly raised August production by 548,000 barrels per day. Brent crude fell 0.69% to $67.83, while WTI slid 1.42% to $66.05. Saudi Arabia raised August prices for Asian buyers, signalling confidence in demand, though uncertainty over the US tariff timeline weighed on sentiment.