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S&P 500 drops as traders react to tariff fears and disappointing economic data
The S&P 500 declined on Tuesday, influenced by disappointing economic data and tariff announcements from President Trump.
The index fell 0.49% to close at 6,299.19, while the Nasdaq Composite decreased by 0.65% to 20,916.55.
The Dow Jones Industrial Average lost 61.90 points, or 0.14%, finishing at 44,111.74. Recent job reports have raised concerns about the U.S. economy’s stability.
The ISM Services index flatlining in July heightened stagflation worries, as the services sector constitutes about 70% of the economy.
Trump indicated potential tariffs on semiconductors and pharmaceuticals, reinforcing market anxiety.
Palantir’s shares surged 7.9% on surpassing $1 billion in revenue, while Caterpillar reported an earnings miss, leaving its shares largely unchanged. Eaton’s stock dipped 7% due to poor guidance.
Market Outlook
Terry Sandven from U.S. Bank Asset Management commented on the pullback, acknowledging elevated valuations but noting positive signals like low inflation and rising earnings.
