US stock indexes slipped on Tuesday following a weaker-than-expected report on activity for US businesses, which raised concerns about the impact of President Trump’s tariffs on the economy. The S&P 500 fell 0.5%, while the Dow Jones Industrial Average dropped 61 points and the Nasdaq composite fell 0.7%.
The disappointing report, from Edgewell Personal Care, a company behind popular brands like Schick and Playtex, showed lower-than-expected profit and revenue for its latest quarter. CEO Rod Little attributed the decline to “a very weak season for sun care in North America” and tariffs acting as a drag on profits.
However, other companies bucked the trend with positive results, including Palantir Technologies, which rose 7.8% after reporting stronger-than-expected profit, and Axon Enterprise, which jumped 16.4% following a strong profit report. These gains offset some of the losses in the broader market, keeping it within 1.4% of its record high.
The Federal Reserve’s potential interest rate cut is also seen as a factor contributing to the mixed market. With expectations building for a rate cut in September, lower interest rates could make stocks look less expensive and boost the economy.
Meanwhile, Treasury yields sank sharply after Friday’s release of a weaker-than-expected US job report, indicating a decrease in inflation concerns. However, some markets abroad saw gains, with indexes rising across Europe and Asia.
The pressure is on companies to report bigger profits in order to justify higher stock prices, which have surged to record highs since April.
Source: https://apnews.com/article/stocks-markets-earnings-trump-rates-aaefba66fe902c6d93f2a75ef25cf45a