Wall Street continued its upward trend on Tuesday, reaching a new record as General Motors and other major U.S. companies reported mixed profit results. The S&P 500 added 0.1% to reach an all-time high, while the Dow Jones Industrial Average rose 179 points, or 0.4%. However, the Nasdaq composite slipped 0.4%.
General Motors dropped 8.1% despite reporting a stronger-than-expected profit in the spring quarter. The company attributed its decline to ongoing tariffs and predicted a $4 billion to $5 billion hit to its results over 2025. This helped offset gains from homebuilders D.R. Horton and PulteGroup, which rallied 17% and 11.5%, respectively.
The U.S. economy appears to be weathering the uncertainty caused by President Trump’s on-and-off tariffs. Many of the proposed taxes are currently on pause, with the next deadline being August 1. Talks on possible trade deals with other countries could lower stiff proposals before they kick in.
Companies like Genuine Parts and Coca-Cola reported mixed results, with Genuine Parts trimming its profit forecast due to the impact of tariffs. Opendoor Technologies lost momentum after climbing as high as $3.99 earlier in the week.
In the bond market, Treasury yields sank as traders expect the Federal Reserve to wait until September at the earliest to resume cutting interest rates. Fed Chair Jerome Powell has been pushing for more data on the effects of Trump’s tariffs on inflation and the economy before making a decision.
Meanwhile, overseas markets were mixed, with Japan’s benchmark rising and then falling back after Prime Minister Shigeru Ishiba vowed to stay in office despite his ruling coalition losing its upper house majority.
Source: https://apnews.com/article/stocks-markets-japan-trump-earnings-41443e3b17bb389ecac11508640084ab