Steven Gohl, a trader, is seen working at the New York Stock Exchange on Monday, July 21, 2025. (Photo: Richard Drew/AP)
After a powerful week of record highs, U.S. stock markets lost a bit of steam on Tuesday. The S&P 500 dipped by 0.3%, marking its first fall after six straight days of setting new records. The Dow Jones Industrial Average dropped by 204 points (0.5%), while the Nasdaq trimmed 0.4% off its recent gains.
The dip came amid a flood of corporate earnings reports, mixed economic signals, and growing speculation about upcoming decisions from the Federal Reserve.
Mixed Results From Big-Name Stocks
SoFi Technologies was one of the day’s standout performers, climbing 6.6%. In contrast, pharmaceutical giant Merck slipped 1.7%, and UPS tumbled 10.6% following a weaker-than-expected earnings report. Dozens of major U.S. companies are reporting this week, with almost one-third of the S&P 500 companies releasing their financial results.
While some firms are surpassing expectations, others are facing investor backlash for underperforming or offering less-than-hopeful outlooks.
Investor Doubts Grow as Growth Slows
Economic reports added to the cautious mood. One showed a decline in job openings in June, though figures were still stronger than analysts had expected. Another report revealed that while consumer confidence is improving, Americans are still uncertain about the near future. Their short-term expectations remain below the level that typically indicates economic strength.
Stephanie Guichard from The Conference Board noted that confidence has stabilized, but hasn't bounced back to the robust levels seen last year.
Trade Talks Add More Uncertainty
Wall Street’s reaction was relatively calm after China’s top trade official stated that both China and the U.S. are discussing the possibility of delaying the next round of tariffs, which are set to kick in after August 12. U.S. Trade Representative Jamieson Greer said that any decision on postponement will rest with President Trump after officials return to Washington.
Another round of potential tariffs is also due later this week, keeping investors on edge.
Big Week Ahead for the Market
All eyes are on the Federal Reserve as it continues its two-day meeting to decide whether interest rates should change. Despite pressure from former President Trump to lower rates, the Fed is expected to wait and see how tariffs are affecting inflation and the broader economy.
Several important economic reports, including the monthly jobs data, are also due this week. These could play a key role in deciding whether stocks can keep their upward momentum or face a pullback.
Winners and Losers Among Stocks
Some companies are still shining. Cadence Design Systems jumped 9.7% after raising its revenue forecast, thanks to growing demand in the AI sector.
But others weren’t so lucky. UnitedHealth fell 7.5% after its spring profits missed forecasts and its 2025 earnings guidance came in below investor hopes. Analysts had expected $20 per share; the company only projected at least $16.
Novo Nordisk’s U.S.-traded shares plunged 21.8% after it cut its full-year sales forecast due to increasing competition for its Wegovy weight-loss drug. The Danish company also announced a new CEO.
Global Markets Show Mixed Trends
Internationally, Japan’s Nikkei index dropped 0.8%. Other markets across Asia and Europe, however, posted modest gains.
Meanwhile, in the bond market, the yield on the 10-year U.S. Treasury slipped to 4.32% from 4.42% the previous day, reflecting a slight shift toward safer investments.
