U.S. stocks closed slightly lower Tuesday as traders weighed upbeat corporate earnings against a fresh wave of trade policy uncertainty.
The Dow Jones Industrial Average slipped 0.3%, while the S&P 500 and Nasdaq Composite both eased 0.4–0.5%, ending a choppy session on Wall Street.
Investors reacted cautiously to Washington’s newly proposed tariffs on semiconductor, chip, and pharmaceutical imports, raising fears of renewed pressure on global supply chains.
Despite the pullback, optimism remains that the Federal Reserve will deliver a long-anticipated interest rate cut next month, following recent signs of cooling inflation.
Tech and Safety Stocks Outperform
Palantir Technologies (PLTR) stood out among gainers, rallying 6–8% after reporting robust second-quarter earnings and highlighting expanding opportunities in artificial intelligence.
The stock received an additional boost from speculation over a multi-billion-dollar U.S. Army software contract.
Meanwhile, Axon Enterprise (AXON) delivered one of the day’s strongest moves, surging 15% as revenue and earnings topped expectations. The company’s upgraded 2025 guidance reflects growing adoption of its law enforcement technology products.
Pharmaceutical giant Pfizer (PFE) rose 3.9%, benefiting from stronger-than-forecast quarterly revenue, while DuPont (DD) advanced 3.2% on improved earnings and an upbeat outlook.
Heavy equipment maker Caterpillar (CAT) added modest gains after reporting resilient machinery demand.
Biotech Sell-Off Drags on Sector
Losses were concentrated in biotech and health-related stocks. Vertex Pharmaceuticals (VRTX) plunged 16% after announcing the discontinuation of a promising pain-drug program, overshadowing otherwise solid earnings.
Hims & Hers Health (HIMS) fell 11% on disappointing profit and sales figures, despite maintaining its full-year forecast.
Kyndryl (KD) slid 17% as weaker-than-expected revenue rattled investors, despite notable profit improvements.
Looking Ahead
Market watchers say corporate earnings will continue to dictate market direction this week, with upcoming reports from AMD, Disney, and McDonald’s likely to influence investor sentiment.
However, analysts caution that escalating trade measures could inject volatility into the weeks ahead.
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