FX.co ★ US Stocks Retreat from Highs as Tech, Tariffs Weigh

During the afternoon trading session, U.S. stock markets retreated from the record highs set on Monday as investors absorbed a slew of corporate earnings reports and fresh trade developments. The S&P 500 remained relatively unchanged, while the Nasdaq saw a decline of 0.4% and the Dow increased by over 100 points. Megacap technology firms and semiconductor companies faced pressure in anticipation of significant earnings announcements from Alphabet and Tesla. Notable declines included Nvidia, which fell by 2%, and Broadcom, which dropped by 3.3%. Lockheed Martin experienced a sharp decrease of 8.6%, while Philip Morris decreased by 7.4%, both following unsatisfactory earnings results. Additionally, General Motors warned of more severe tariff-related profit impacts following a 32% decline in the second quarter, amplifying investor concerns regarding trade policy effects. In trade news, President Trump revealed a proposed agreement with the Philippines featuring a 19% tariff rate; confirmation from Manila is still awaited. On another front, Treasury Secretary Scott Bessent indicated that the U.S. is likely to extend its tariff deadline with China and plans to engage in discussions with Chinese officials next week in Stockholm.