Stock Market Today: Stocks Slide Amid Earnings, Trade Tensions, and Economic Data

​U.S. stocks dipped on Tuesday as Wall Street digested the latest release of corporate earnings, global trade tensions, and mixed economic data. The benchmark S&P 500 (GSPC) dropped 0.6%, while the Dow Jones Industrial Average (DJI) fell by 0.3%. The tech-heavy Nasdaq Composite (IXIC) also slipped by about 0.6%. This follows a strong recovery on Monday, but concerns over ongoing tariff pressures and weaker-than-expected corporate guidance have investors on edge.

The losses come as Wall Street remains focused on a busy earnings season, with companies like Palantir (PLTR), AMD (AMD), and Rivian (RIVN) set to report in the coming days. However, President Trump's ongoing tariff threats and escalating trade negotiations are keeping investors cautious. Economic reports also highlighted concerns over inflationary pressures, although PMI data showed some signs of growth in the services sector.

Market Movers:

• ​Palantir Technologies (PLTR) +5%: Palantir rose after reporting better-than-expected earnings, with revenue exceeding $1 billion for the first time in a quarter. The stock rallied in late morning trading as investors reacted positively to the company's strong performance and growth in its big data analytics business. The results signal a solid future for Palantir, with its expanding customer base and data-driven solutions gaining traction across sectors.
• Hims & Hers Health (HIMS) -6%: Hims & Hers dropped 6% after reporting second-quarter revenue that missed analyst estimates. Although the telehealth company posted a 73% year-over-year revenue increase, the reported $544.8 million fell short of the expected $552 million. Despite the revenue miss, the company maintained its full-year guidance, which helped temper the negative reaction somewhat. However, the stock still slid as investors expressed concerns over its growth trajectory amid a competitive telehealth landscape.
• AMD (AMD) -0.97%: Shares fell by nearly 1% as the market digested the company's earnings outlook amid a slowdown in semiconductor demand. Although AMD remains a leader in high-performance computing, the broader chip industry is facing headwinds, including lower consumer demand and supply chain challenges. Investors are waiting on AMD’s earnings report later today, which may offer more clarity on the company’s growth prospects amid global economic uncertainty.
• Rivian (RIVN) -1.57%: Rivian fell over 1.5% following a market pullback. Despite ongoing optimism around EVs, the stock has faced pressures related to production challenges and increased competition from established automakers. Rivian’s future in the EV market remains uncertain as investors await signs of sustained production and sales growth.

​Global Trade Concerns and Tariff Pressures

One of the main factors weighing on the market today is the ongoing trade uncertainty, especially President Trump’s tariff policies. Trump has threatened to significantly raise tariffs on several countries, including India, which has raised concerns about rising costs and potential disruptions in global supply chains. The tariff deadline coming later this week has caused last-minute trade negotiations as importers brace for a significant increase in tariffs, ranging from 10% to 50%.

In a CNBC interview on Tuesday, Trump also stated that pharmaceutical imports could face tariffs as high as 250%. The potential impact on various industries, particularly tech and consumer goods, has led to cautious sentiment across markets. While some analysts, like those from UBS, believe the tariffs will not end the current bull market, there is still considerable uncertainty surrounding their long-term economic impact.

​Economic Data

The latest economic data showed mixed signs about the state of the economy. The Institute for Supply Management (ISM) Services PMI displayed modest growth, with the index dropping slightly to 50.1 from June’s 50.8. Despite this dip, a reading above 50 still indicates expansion. Survey respondents highlighted seasonal and weather-related challenges as factors impacting business activity. A notable concern was the impact of tariffs, with many reporting price increases in commodities.

On a more positive note, the S&P Global Composite PMI, which combines services and manufacturing activity, showed stronger-than-expected growth at 55.1, up from 52.9 the previous month. This signals that the U.S. economy is on track to grow at a 2.5% annualized rate in Q3, suggesting that despite challenges, economic activity remains solid.

​Looking Ahead

Markets will continue to deal with global trade uncertainties, particularly the rise of tariffs. Investors will be watching to see whether President Trump's trade policies lead to lasting market disruptions or if the tariffs will have a minimal impact on U.S. corporate profits. The ongoing earnings season will also be a key factor, with companies like McDonald's (MCD) and Disney (DIS) reporting on Wednesday. These reports will provide deeper insight into how consumer demand and global economic pressures are impacting corporate performance. Additionally, the outlook for semiconductor companies like AMD will be pivotal as the chip industry navigates supply chain and demand challenges.