FX.co ★ US Stocks Fall on Tariff, Inflation Jitters

The three major U.S. stock indices experienced a decline on Thursday, with movements in Microsoft and Meta proving insufficient to uplift the overall market amid growing trade tensions and economic apprehensions. The S&P 500 saw a decline of 0.5%, marking its third successive loss, while the Nasdaq 100 decreased by 0.4%. The Dow Jones Industrial Average fell by 330 points, impacted significantly by declines in healthcare stocks. Market confidence was shaken by President Trump's decision to maintain a 25% tariff on Mexican imports, alongside impending deadlines for broader trade actions. Additionally, the Federal Reserve's preferred measure of inflation, the core Personal Consumption Expenditures (PCE) index, increased by 0.3% in June and 2.8% on an annual basis, heightening the uncertainty surrounding a potential interest rate cut in September. On the earnings front, Meta soared by 11.2% after surpassing earnings estimates and providing an optimistic sales forecast. Meanwhile, Microsoft rose by 3.9%, with its market capitalization exceeding $4 trillion, fueled by robust growth in its Azure platform. Investors are now turning their attention to upcoming earnings reports from Apple and Amazon, as well as Friday's employment figures, to further gauge the economic outlook.