FX.co ★ S&P 500 Sets Record; Trade, Earnings in Focus

U.S. stocks ended the trading session on Tuesday with mixed results. The S&P 500 reached a new record high, advancing approximately 0.1%, while the Dow Jones Industrial Average increased by 170 points. In contrast, the Nasdaq 100 declined by 0.5% as investors awaited crucial earnings reports from Alphabet and Tesla. The decline in chip stocks influenced the Nasdaq's performance, with notable losses from Nvidia, which fell by 2.4%, and Broadcom, which decreased by 3.3%, following news that SoftBank and OpenAI’s significant AI initiative had encountered delays. Additionally, Lockheed Martin and Philip Morris saw substantial declines, dropping by 10.8% and 8.2%, respectively, due to disappointing financial results. General Motors also experienced an 8% decrease and cautioned about more severe profit impacts related to tariffs following a 32% drop in second-quarter earnings, highlighting investor anxieties regarding trade policies. On the international trade stage, President Trump announced an agreement with the Philippines to impose a 19% tariff rate, although confirmation from Manila is awaited. Meanwhile, Treasury Secretary Scott Bessent indicated that the U.S. is likely to extend its tariff deadline with China and has scheduled a meeting with Chinese officials in Stockholm next week.