BHC:CC - S&P Slips on Tariff Worries, Weak Data
The S&P 500 pulled back Tuesday as traders digested weaker-than-expected economic data and new tariff comments from President Donald Trump, stoking concerns about the state of the U.S. economy.
The Dow Jones Industrial Average decreased 61.9 points to end Tuesday at 44,111.74.
The broader index removed 30.75 points to 6,299.19
The NASDAQ faltered 137.03 points to 20,916.55
The market has seen a whirlwind past few days, with the Dow falling more than 500 points Friday after the latest jobs report signaled that the labour market has been weakening for months. The blue-chip index then recovered those losses Monday, surging almost 600 points.
The indexes took a leg lower Tuesday after the ISM Services index flatlined in July, adding to stagflation concerns that were stirred up in the wake up the recent job figures.
Stagflation indicates a scenario of higher inflation and lower employment. Services make up about 70% of the U.S. economy, so a slowdown in the sector could mean trouble ahead.
Stocks were also bogged down by Trump telling CNBC that tariffs on chips, as well as pharmaceuticals, were coming soon.
Palantir was a bright spot of the day, as shares jumped 7% as the defense technology company said revenue surpassed $1 billion for the first time. On the other hand, major industrial name Caterpillar reported an earnings miss, which sent shares lower earlier in the session. The stock was last marginally higher. Eaton shares, meanwhile, dipped 7% due to disappointing guidance.
The 10-year note yield was up less than one basis point at 4.20%.
Oil prices retreated $1.10 to $65.19 U.S. a barrel.
Gold prices gained $8.20 at $3,434.60 U.S. an ounce.