Stocks pulled back as major indices reversed course from record highs amid disappointing earnings and investor caution ahead of the Federal Reserve’s policy announcement. Losses were broad based, with technology, consumer, and industrial leaders softening as traders recalibrated expectations for economic and monetary policy momentum.
S&P 500, Dow 30, Nasdaq, and Russell Index Performance
The S&P 500 slipped 0.3% to close at 6,370.86, breaking a six-day winning streak as profit-taking set in following record highs. The Dow Jones Industrial Average fell 204.57 points, or .46%, to 44,632.99. The Nasdaq Composite shed 80.29 points, finishing down .4% at 21,098.29, while the Russell 2000 index of small-cap stocks dropped 0.61% to 2,242.96.
Key Macroeconomic Reports
Economic data released Tuesday painted a nuanced picture. U.S. consumer confidence climbed, partly offsetting a report indicating employers advertised fewer job openings at the end of June. The International Monetary Fund (IMF) also updated its global outlook, projecting U.S. and global growth at 3.0% for 2025, helped by lower tariffs and easier credit, but warning that overall prospects are still slightly below pre-April forecasts due to ongoing trade tensions. Corporate earnings delivered mixed signals, with high-profile disappointments in healthcare and transportation weighing on sentiment.
Tariffs and Trade Policy Updates
While recent U.S.-EU and U.S.-Japan agreements have calmed markets by enacting less punitive import tariffs, global trade uncertainty remains elevated. The IMF noted that lower tariff rates versus earlier 2025 levels are supporting a steadier global growth environment, but ongoing negotiations and episodic tensions are still cited as a drag on business sentiment, particularly for multinationals with heavy international exposure.
Yield Curve and Interest Rate Movements
Treasury yields edged lower as traders positioned for the Federal Reserve’s statement at its July meeting. The yield curve remained stable, with short and long-term rates showing little movement. Bond markets broadly expect the Fed to keep rates unchanged but price in possible easing later in the year, depending on further evidence of disinflation and labor strength.
Sector and Stock Highlights
NVIDIA (NVDA)
NVIDIA shares closed at $175.51, -.70%, as the company reportedly placed a large order for AI chips destined for the Chinese market, following a partial easing of trade restrictions. This development bolstered investor confidence in NVIDIA’s leadership within the global AI supply chain and contributed to a modest rally in the broader semiconductor sector. Technical analysts highlighted key resistance levels, noting the stock may be positioned for further gains if trade policy tailwinds persist.
Tesla (TSLA)
Tesla shares declined for a second consecutive session amid continued volatility closing at $321.20, -1.35%. RBC Capital reaffirmed a positive long-term outlook, citing ongoing progress in robotics and software, but flagged near-term risks from tariffs, slowing deliveries, and heightened regulatory scrutiny. Tesla faces further scrutiny as it pushes robotaxi deployments and attempts to counteract margin pressures tied to U.S. and global tariffs.
Meta Platforms (META)
Meta traded near $720.60 as investors geared up for tomorrow’s Q2 earnings release, but closed at $700, -2.46% on the day. Market sentiment is positive on Meta’s AI and digital advertising initiatives, with earnings per share projected to rise sharply from last year. Analyst coverage is overwhelmingly bullish, implying mild upside ahead, although capital spending and regulation remain key themes for the quarter.
McDonald’s (MCD)
McDonald’s shares ended at $302.67, +1.15% after recent news of institutional buying and a reassessment of its outlook. The company maintains a strong balance sheet and a defensive profile, even as revenue growth slows. Analysts project stable earnings for the remainder of the fiscal year, with the brand viewed as a port in the current market’s uncertainty.
Oracle (ORCL)
Oracle remains near all-time highs and closed at $249.98, +.92%, driven by robust demand for cloud and AI infrastructure solutions. The company’s fourth-quarter revenue and profit beat expectations, propelled by 11% year-over-year sales growth and rapid expansion in its Infrastructure as a Service business. Investors continue to view Oracle as a core AI beneficiary despite valuation concerns.
Palantir Technologies (PLTR)
Palantir held relatively steady following recent profit-taking and closed at $156.24, -1.04%, with Wall Street focused on its expanding government and commercial contracts. Analyst sentiment is constructive long term, but the company remains volatile ahead of earnings, reflecting heightened expectations for continued revenue growth—a focal point in the coming quarter.
Rio Tinto Group (RIO)
Rio Tinto traded marginally higher closing at $62.27, +.13%, supported by improving metals demand and news of incremental stake increases in high-profile global projects. Analysts remain constructive, citing disciplined capital deployment and a strong outlook in materials demand, especially following recent acquisitions in the lithium and copper sectors.
Commodities and Digital Assets
- Gold: Closed significantly higher at $69.25, +3.81% as investors weighed shifting inflation signals and cautious Fed commentary. SPDR Gold Shares (GLD) closed at $306.25, +.28%)
- Silver: Posted mild gains, closing at $38.385, +.26%.
- Crude Oil: Prices rose $69.25, +3.81%, anchored by robust demand and ongoing OPEC+ supply discipline.
- Bitcoin: Ended the session near recent highs at $118,345, as institutional interest in digital assets provided a counterweight to choppy equity markets.
