The US stock market closed lower on Tuesday, snapping a two-day rally as investor jitters returned to the fore. The S&P 500 fell 0.22%, while the Dow dropped 0.36% and the Nasdaq edged down 0.05%. Despite recent gains, all three major indices remain below their pre-April levels when President Trump’s tariff announcements first rattled markets.
Auto stocks took a hit despite fresh rumors of a possible reprieve on tariffs. Ford, GM, and Rivian each ended lower, following a new forecast from S&P Global Ratings projecting a 700,000-unit drop in annual US car sales if tariffs move ahead. Analysts warned that affordability challenges and elevated interest rates already pressure demand, making tariffs a further headwind.
However, tech and financial names led the upside among individual stocks. Palantir surged over 6% following NATO’s purchase of its AI-powered Maven Smart System. Bank of America and Citigroup also posted solid gains after beating first-quarter earnings expectations, driven by strong performance in their trading divisions.
Johnson & Johnson beat Wall Street expectations in Q1, with adjusted earnings per share rising 20% year-over-year to $2.77. The company raised its full-year revenue guidance, citing the impact of its Intra-Cellular Therapies acquisition and addition of Caplyta. Treasury yields climbed on Tuesday, reflecting broad investor unease over trade tensions and inflation.
Former Treasury Secretary Janet Yellen warned that President Trump’s economic strategy is eroding global trust in US financial assets, with volatility in Treasury yields echoing investor concerns. The bond market’s volatility has raised questions about the long-term stability of US financial assets.
Source: https://finance.yahoo.com/news/wall-street-banks-cashing-trade-123249767.html