CNBC Business News Update - Market Close: Stocks Sell Off, Investors Rattled By New Tariff Deadline, Tesla Investors Rattled By Musk In Politics 7/7/25

Episode Date: July 7, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger CNBC. Wall Street opens Tuesday morning after a sell-off for stocks. President Trump walking back Wednesday's tariff deadline with new threatened tariff rates and a new deadline. The Dow fell 422 points, almost 1% led lower by shares of Sherwin-Williams, down 2%. The S&P 500 index was down 49 points. That was 8 tenths of a percent. The Nasdaq fell 188 points, 9 tenths of a percent. Nvidia shares were down a little more than a half percent on Monday.

Companies who shares hit fresh all time highs on Monday include Morgan Stanley, Uber and Royal Caribbean Cruises. The market was gonna be backing off a little bit from the record highs at the open, even before we got the growling on the trade front. Maybe the market's reading it as if you were going to defer the deadline to August 1st and not make it seem like a complete retreat, what you do is reiterate the hard line that you had on paper. That's why we're taking it in stride for now.

That's CNBC's Mike Santoli. President Trump says tariffs as of August 1st now instead of Wednesday of 25% will be placed on goods coming from Japan, South Korea and Kazakhstan. 30% on South African goods, 40% tariffs on items from Laos and Myanmar. All of these tariff rates will be effective on August 1stus All of these tariff rates on August 1st and all of to change either higher o on how negotiations are g again, kicking that deadl

in pretty much every case the same level or lower t on April 2nd CNBC's Megan industry watching texas is killed nearly 100 people. The Insurance Journal reports that the deadly floods are reinforcing Texas as a crisis epicenter. Just last year, Texas endured Hurricane Barrel, which knocked out power to millions,

a windstorm that blew out Houston skyscraper windows and numerous wildfires. It says insurers are struggling to keep pace with claims as Texas over the past 10 years accounts for a third of all damage caused by extreme weather in the US. When you have a three-story wall of water coming at you in less than an hour it's very hard to keep everybody protected so it's it's a terrible thing that's happened. The lesson from this is we can work on building resiliency.

So it's not a huge surprise that there are floods in America. It's true. Floods can happen anywhere, straight line winds, hurricanes, tornadoes. We need to just make sure people are protected, which means improving resiliency. That's Allstate CEO Tom Wilson on CNBC.

Tesla shares tanked Monday after CEO Elon Musk announced he's creating a new political party after Republicans passed a spending bill that increases the deficit when President Trump campaigned on lowering it. That's what's weighing on the stock more than anything else. Look, you saw that when he went to war with Donald Trump, shares of Tesla got rocked. And then when Elon Musk said, yeah, I probably got, you know, it said too much, you saw Tesla shares recover. Now he's saying, let's form a new political party.

He did not come out and say the implication is here. He's focusing on politics instead of focusing on Tesla. CNBC's Phil LeBeau. On Tuesday's watch list we get the latest on how small business owners are feeling about the economy. We also get new consumer credit data, Boeing reports, orders and deliveries for new planes for June, Amazon's Prime Day sale begins and Walmart's deals sale begins. Jessica Edinger CNBC. President's latest uh I swear he's watching. Squawk Box 6 a.m. Eastern and streaming on CNBC Plus.