CNBC Daily Open: To bet on a meteor strike, or tariff-driven inflation?

U.S. President Donald Trump announced Tuesday that copper and pharmaceutical imports volition look tariffs of 50% and arsenic precocious arsenic 200%, respectively.

Following the news, the S&P 500, which deed aggregate grounds closes past week, crushed to a halt and closed mostly flat.

That said, it's a muted effect for specified hefty tariffs, suggesting investors are either brushing disconnected Trump's tariffs arsenic hollow threats, oregon discounting the effects they could person connected ostentation and the economy.  

Such complacency could beryllium a mistake, arsenic immoderate marketplace watchers person cautioned. It besides mirrors the White House's stance connected tariffs, which mightiness not beryllium a presumption investors privation to take.

On Tuesday, Stephen Miran, president of Trump's Council of Economic Advisers, told CNBC's "Squawk Box" that the likelihood of tariffs starring to higher prices is simply a "rare event" similar "pandemics or, oregon meteors oregon whatever."

"I don't mean to beryllium dismissive," Miran clarified. "All I mean to accidental is that prediction is difficult, and we should ever talk successful presumption of likelihood and possibilities."

For the record, there's a 0.004% accidental of an asteroid that volition alert adjacent Earth successful 2023 striking our planet, according to NBC News.

New tariffs connected copper and pharmaceuticals. Copper imports volition pull a 50% duty portion that of pharmaceuticals volition beryllium taxable to tariffs arsenic precocious arsenic 200%, Trump said Tuesday. He didn't specify erstwhile they would instrumentality effect, but said the second mightiness footwear successful wrong a twelvemonth and half.

U.S. stocks were mostly unchanged. On Tuesday, the S&P 500 and Nasdaq Composite closed astir the flatline, portion the Dow Jones Industrial Average slipped 0.37%. The Stoxx Europe 600 climbed 0.41% aft dipping successful the afternoon.

Elon Musk lashes retired astatine Tesla bull. Wedbush Securities' Dan Ives, who is possibly the expert astir bullish connected Tesla, offered three recommendations to Tesla's board, including "oversight" of Musk's governmental activities. Musk retorted, "Shut up, Dan."

Shein files for Hong Kong IPO. The online accelerated manner giant's confidential filing submitted past week is simply a bid to use unit connected U.K. regulators to move guardant its London listing ambitions, according to the Financial Times.

[PRO] Markets are refusing to perceive to Trump. The latest tariff announcements from the White House person truthful acold elicited a muted effect from U.S. markets. Some marketplace observers are acrophobic that investors are being excessively optimistic.

Global banal markets are calling Trump's bluff connected tariffs

On Monday, Trump slapped punitive tariff rates connected 14 trading partners — but planetary markets are truthful acold shrugging disconnected the caller policies. Asia-Pacific equity markets had a muted response, portion European banal markets closed higher Tuesday.

Investors had already priced successful the information that galore commercialized deals would not beryllium reached earlier the July deadline, according to Toni Meadows, caput of concern astatine London's BRI Wealth Management — but helium suggested that immoderate investors whitethorn beryllium being complacent.

— Jenni Reid and Chloe Taylor