Wall Street remained close to record levels on Tuesday, with investors digesting a mix of corporate earnings and updates on how major U.S. companies are handling the impact of President Donald Trump’s tariffs.
By midday, the S&P 500 slipped slightly by 0.1%, pulling back from the record it set the day before. The Dow Jones Industrial Average was up 44 points, or 0.1%, while the Nasdaq composite dipped 0.4% after also reaching a new high.
General Motors fell 5.8% despite posting stronger-than-expected profits for the spring. The automaker warned it still anticipates a $4 billion to $5 billion impact from tariffs in 2025, though it hopes to soften about 30% of that blow. GM also said the current quarter could see a deeper effect from tariffs than the previous one.
While GM struggled, homebuilders outperformed. D.R. Horton surged 14.5% and PulteGroup jumped 9.2%, after both companies reported earnings that exceeded expectations. Still, they cautioned that homebuyers continue to face difficulties, such as high mortgage rates and economic uncertainty.
Despite the fluctuating trade policy environment, the broader U.S. economy appears to be holding steady. Many of Trump’s proposed tariffs are currently paused, with a key decision date set for August 1. Trade negotiations are ongoing, which could prevent additional tariffs from taking effect.
Some companies are already adjusting their outlooks based on current tariff policies. Genuine Parts, a global supplier of automotive and industrial replacement parts, lowered its full-year profit forecast to account for all active U.S. tariffs and its updated second-half outlook. Still, its shares climbed 5.5% after posting better-than-expected quarterly profits.
Defense and aerospace company RTX dropped 2.3% after it cut its 2025 earnings forecast but raised its revenue outlook, citing the impact of tariffs and recent federal tax policy changes. CEO Chris Calio described the changes as part of their updated economic assessment.
Coca-Cola slipped 1% despite beating profit expectations. Revenue only narrowly exceeded estimates, and the company said higher prices helped offset a dip in case volume sales during the spring.
Opendoor Technologies — a favorite among retail traders seeking the next viral stock — continued its rapid climb, adding another 3.1% to reach $3.31. Just over a week ago, shares were trading at only 78 cents.
In the bond market, Treasury yields declined, with the 10-year yield falling to 4.33% from 4.38% the previous day. Traders are still betting the Federal Reserve will wait until at least September before cutting interest rates again.
Fed Chair Jerome Powell has reiterated that more data is needed before making decisions on rate cuts, particularly as the central bank monitors the inflationary impact of Trump’s tariff policies. Trump has repeatedly pushed for quicker rate cuts, often voicing frustration with the Fed’s cautious approach.
Internationally, Japan’s stock market saw a brief surge before settling slightly lower after returning from a holiday. The Nikkei 225 fell 0.1% as political uncertainty grew following the ruling coalition’s loss of its majority in the upper house during Sunday’s election. Prime Minister Shigeru Ishiba has vowed to remain in office, but the result complicates his legislative agenda.
A breakthrough in trade discussions with the U.S. could ease some pressure on Japan, though progress has so far been limited. Higher U.S. tariffs on Japanese exports remain a looming risk, with the next deadline approaching on August 1.
Markets across Asia and Europe were mixed as investors weighed ongoing political and trade developments.
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