U.S. stock markets retreated slightly on Tuesday after a strong streak of record-setting performances. The S&P 500 slipped 0.2% in afternoon trading following six consecutive days of gains. The Dow Jones Industrial Average dropped 176 points, or 0.4%, as of 12:32 p.m. Eastern time, while the Nasdaq composite also fell 0.2% from its own record high.
Among individual stocks, SoFi Technologies surged 14.8%, while Merck declined 3.5% and UPS dropped sharply by 9.8%, reactions tied to a wave of earnings reports from major U.S. corporations. This week, hundreds of companies, including nearly a third of the S&P 500, are sharing their financial results for the spring quarter.
Bond yields eased as the Federal Reserve started a two-day meeting to decide on short-term interest rates. Despite persistent pressure from President Donald Trump to lower rates to stimulate the economy, most analysts expect the Fed to hold off until more data on the economic impact of tariffs is available.
While the U.S. economy appears resilient so far despite tariff pressures, signs of slowing growth have emerged. A recent report showed a decline in job openings at the end of June compared to the previous month, though openings still exceeded economists’ forecasts. Meanwhile, consumer confidence improved, but expectations for the near future remain subdued—below levels that often precede recessions.
Stephanie Guichard, senior economist for global indicators at The Conference Board, noted, “Consumer confidence has stabilized since May, bouncing back from April’s drop, but it is still below the high levels seen last year.”
In China, stock indexes showed mixed results as top trade representatives from the U.S. and China entered their second day of negotiations in Stockholm. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng aimed to reach an agreement or extend the current tariff truce before an August 12 deadline. Without an accord, substantial tariffs could be reinstated.
Later this week, another deadline looms on Friday for several of President Trump’s proposed tariffs targeting other nations. Alongside these trade developments, several critical economic reports—including the latest job market update—are scheduled for release.
This action-packed week could be decisive in determining whether U.S. stocks can sustain their climb to new records or face pressure from concerns over stretched valuations after rapid gains in recent months.
One factor that could help markets maintain momentum is strong corporate earnings growth.
Cadence Design Systems, a computational software firm benefiting from increased investment in artificial intelligence, saw its stock rise 9.1% after raising its revenue growth forecast for the year. The company had already posted an 11.1% gain year-to-date.
However, some companies are facing harsh investor reactions after falling short of earnings expectations.
UnitedHealth Group’s shares fell 5.3% following a spring profit report below analysts’ forecasts, coupled with a disappointing full-year profit outlook. The healthcare company projected earnings of at least $16 per share for 2025, while analysts had expected closer to $20.
Novo Nordisk’s U.S.-traded shares plummeted 21.8% after the Danish pharmaceutical firm lowered its sales growth forecast for the year. The cut was partly due to increased competition affecting its Wegovy weight-loss drug. Novo Nordisk also announced a new CEO.
Outside the U.S., Japan’s Nikkei index dropped 0.8%, but stock markets in much of Asia and Europe mostly rose.
In bond trading, the yield on the 10-year U.S. Treasury note declined to 4.35% from 4.42% at the close of Monday’s session.
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