FX.co ★ Wall Street Drops, S&P 500 Snaps 6-Day Rally

In afternoon trading, U.S. stocks experienced a downturn, with the S&P 500 declining by 0.8%, on the verge of ending its six-day winning streak. The Nasdaq also decreased by 0.9%, and the Dow Jones fell by 250 points. This decline occurred after a recent rally fueled by easing trade tensions and investor optimism regarding President Trump’s proposed tax and tariff policies. However, concerns that the relief over moderating inflation and trade progress may be premature have dampened sentiment. A selloff in leading technology stocks pulled the market down; Alphabet saw a decline during its Google I/O event, and Nvidia, Meta, Apple, and Microsoft also experienced losses. Notably, Tesla bucked the trend among megacap stocks by increasing 2%, as CEO Elon Musk reaffirmed his commitment to lead the company for the next five years. Investor caution heightened due to mixed earnings reports from Home Depot and renewed warnings from JPMorgan and Federal Reserve officials, including St. Louis Fed President Alberto Musalem, who pointed out that tariffs could exert pressure on the economy and influence the inflation outlook.