FX.co ★ US Stocks Dip on Trade Tensions and Weak Data

In the afternoon trading session, Wall Street experienced a decline as investors evaluated the impact of weaker economic indicators, escalating trade tensions, and a diverse set of corporate earnings reports. Both the S&P 500 and the Nasdaq recorded a decline of 0.3%, while the Dow Jones Industrial Average remained slightly below the break-even point. This movement followed a significant rebound on Monday after sharp losses linked to a disappointing jobs report released last Friday. Concerns about potential stagflation came to the fore again after data from the ISM Services index indicated a stagnation in activity for July. Furthermore, tensions heightened as President Trump proposed substantial tariffs—potentially soaring to 250%—on pharmaceutical imports, in addition to possible duties on semiconductors. This added to market apprehension due to ongoing trade disputes involving India, Switzerland, and China. From a sector perspective, the utilities and technology sectors experienced the most pressure, while the materials sector demonstrated relative resilience. In terms of corporate earnings, Palantir saw its stock rise by 7.3% following an upward revision of its revenue outlook. Pfizer's stock increased by 5% after delivering a robust quarterly performance. Conversely, Vertex Pharmaceuticals' shares plummeted by 19% due to the decision to terminate late-stage trials for its advanced pain medication.