The S&P 500 closed down 0.49% on Tuesday, weighed down by concerns over tariffs and poor economic data. The Nasdaq Composite fell 0.65%, while the Dow Jones Industrial Average dropped 61.90 points, or 0.14%. The decline came after President Donald Trump hinted at new tariffs on semiconductors and pharmaceuticals.
Economists are worried about a potential slowdown in the services sector, which accounts for 70% of the US economy. The ISM Services index flatlined in July, adding to stagflation concerns. Stock market indexes took a leg lower after Trump’s comments, with investors fearing increased costs due to tariffs and economic uncertainty.
In contrast, some stocks opened higher in premarket trading, including Palantir Technologies, which rose 7% after exceeding expectations for quarterly revenue. Pfizer also gained 2.8% following its earnings beat. Despite the mixed performance, stock futures edged higher shortly after 6 p.m. ET.
The market’s response to Trump’s comments and economic data suggests that investors are becoming increasingly cautious about the outlook for the US economy. As the president prepares to announce new tariffs on semiconductors and pharmaceuticals, investors are waiting with bated breath to see how this move will impact the economy and stock market.
Source: https://www.cnbc.com/2025/08/04/stock-market-today-live-updates.html