FX.co ★ Wall Street Falls as Economic and Trade Worries Mount

U.S. stocks closed lower on Tuesday as investors contended with disappointing economic data, escalating trade tensions, and varied corporate earnings results. The S&P 500 fell by 0.5%, the Nasdaq declined 0.7%, and the Dow Jones Industrial Average decreased by 62 points, despite Monday's strong recovery from Friday's losses linked to a lackluster employment report. Concerns about stagflation reemerged following the release of the ISM Services index, which indicated stagnation in activity for July. Meanwhile, President Trump's threats of significant tariffs—potentially up to 250% on pharmaceutical imports—and the possibility of additional levies on semiconductors fueled further market jitters amid ongoing trade disputes with India, Switzerland, and China. Sector performance showed utilities and technology were the most significant laggards, though materials exhibited relative resilience. On the corporate earnings front, Palantir saw a notable gain of 7.8% after revising its revenue forecast upward, and Pfizer rose 5.2% on the back of a robust quarterly performance. Conversely, Vertex Pharmaceuticals plummeted 20.6% after halting late-stage trials for its next-generation pain medication.