Core Points - The U.S. Department of Commerce announced the inclusion of 407 product categories in the tariff list for steel and aluminum derivatives, imposing a 50% tariff on the steel and aluminum components of these products [1] - The newly added list covers a wide range of products, including wind turbines and their components, mobile cranes, railway vehicles, furniture, compressors, and pump equipment [1] - Experts indicate that this move will have significant impacts, increasing inflationary cost pressures on domestic manufacturers [1]

Market Performance - Major US stock indices showed mixed performance, with the Nasdaq Composite falling significantly by 1.46% to 21,314.95 points, while the S&P 500 declined by 0.59% to 6,411.37 points. The Dow Jones Industrial Average saw a slight increase of 0.02% to 44,922.27 points, reaching an intraday all-time high [1] Sector Performance - The S&P 500 index had a mixed sector performance, with six sectors rising, led by real estate which increased by 1.8% due to better-than-expected housing data. In contrast, technology and communication services sectors fell by over 1.9% and 1.2%, respectively [1] Individual Stock Movements - Nvidia experienced a significant drop of 3.5%, marking its largest single-day decline in nearly four months. Other major tech stocks such as Apple, Microsoft, Google, and Meta also faced declines, with Netflix and Meta dropping over 2%, while Tesla, Microsoft, and Amazon fell more than 1% [1] - Intel saw a notable increase of approximately 7% following a $2 billion investment from Japan's SoftBank, which was interpreted as a positive endorsement of its chip strategy [1] - Home Depot, a component of the Dow, rose by 3.17% despite reporting quarterly earnings below expectations, as it maintained its full-year guidance, boosting investor confidence [1] Chinese Stocks - The Nasdaq Golden Dragon China Index fell by 0.9%, with notable declines in stocks such as Xunlei (over 10%), Weibo (over 6%), and Kingsoft Cloud (nearly 5%). Other major Chinese companies like JD.com, Alibaba, NetEase, and Baidu also experienced declines of over 1% [2] Trade Policy Impact - The US Department of Commerce announced the addition of 407 product categories to the steel and aluminum tariff list, with a 50% tax rate applicable. This includes a wide range of products such as wind turbines, mobile cranes, and furniture [2][3] - The expanded tariff list is set to take effect on August 18, with the Trump administration emphasizing the need to protect domestic manufacturing and reduce import dependency [3] Economic Outlook - Market sentiment is cautious ahead of the Kansas City Fed's annual economic symposium, where Fed Chair Jerome Powell is expected to provide insights on future interest rate policies. Current market expectations suggest two rate cuts of 25 basis points each may occur this year, with the first potentially in September [4] - Concerns about consumer confidence have been raised due to the implications of the Trump tariff plan and potential pressure on retail sales in the coming months [3]

Group 1: Tariffs and Trade - The U.S. Department of Commerce announced the inclusion of 407 product categories in the steel and aluminum tariff list, with a tax rate of 50% [3] - The expanded tariff list includes a wide range of products such as wind turbines, mobile cranes, railway vehicles, furniture, and various machinery [3] - The tariffs aim to protect domestic manufacturing and reduce reliance on imports, as emphasized by the Trump administration [3] Group 2: U.S. Stock Market Performance - U.S. stock indices showed mixed results, with the Nasdaq down 1.46% and the S&P 500 down 0.59%, while the Dow Jones increased by 0.02% [5] - Major tech stocks experienced declines, with AMD falling over 5% and Nvidia dropping more than 3%, while Intel rose approximately 7% following a $2 billion investment from SoftBank [5] - The Nasdaq China Golden Dragon Index fell by 0.9%, with notable declines in stocks like Xunlei (down over 10%) and Weibo (down over 6%) [5] Group 3: Commodity Prices - Gold prices decreased, with COMEX gold futures down 0.56% to $3359.1 per ounce, and silver futures down 1.81% to $37.34 per ounce [7] - International oil prices also fell, with WTI crude oil futures down 1.69% to $62.35 per barrel and Brent crude oil futures down 1.22% to $65.79 per barrel [7]

Core Viewpoint - The U.S. Department of Commerce has expanded the steel and aluminum tariff list to include 407 product categories, imposing a 50% tariff rate, aimed at protecting domestic manufacturing and reducing import dependency [1][2]. Group 1: Tariff Expansion Details - The new tariffs, effective from August 19, significantly broaden the scope of previous tariffs announced by the Trump administration, now covering a wide range of products including wind turbines, mobile cranes, railway vehicles, furniture, and various machinery that contain steel or aluminum components [2]. - The Department of Commerce's action is intended to close loopholes and continue revitalizing the U.S. steel and aluminum industries, as stated by Jeffrey Kessler, Deputy Assistant Secretary for Industry and Security [2]. Group 2: Economic Impact - Experts warn that the new tariffs could affect at least $320 billion worth of imports based on 2024 projections, potentially exacerbating cost-push inflation as indicated by the rising Producer Price Index (PPI) [3]. - Importers face a dilemma as many goods are already in transit; accepting the goods will incur high tariffs, while delaying delivery could lead to significant financial losses [3]. Group 3: Historical Context - In June, the Trump administration announced a doubling of steel and aluminum import tariffs to 50%, which has already caused disruptions in global supply chains [4].