U.S. Stocks Tumble as Trade Tensions Escalate; Tesla Shares Hit by Musk-Trump Feud

Major U.S. equity indices faced significant losses as President Donald TRUMP ramped up tariff threats against Japan and South Korea. The Dow Jones Industrial Average plunged 470 points (1.05%), while the S&P 500 and Nasdaq Composite dropped 0.84% and 0.90% respectively. Market sentiment soured after Trump warned of imposing 25% tariffs on both nations, accusing them of maintaining trade imbalances with the U.S.

The WHITE House extended its negotiation deadline from July 9 to August 1, creating uncertainty about near-term resolutions. "We will not tolerate anti-American policies," Trump declared, threatening additional 10% tariffs on uncooperative trading partners.

Meanwhile, Tesla shares plummeted 7.2% as CEO Elon Musk's public disagreements with the administration intensified. The electric vehicle maker's stock underperformed the broader tech sector decline.