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Stocks pulled back Tuesday as traders digested weaker-than-expected economic data and new tariff comments from President Donald Trump, stoking concerns about the state of the U.S. economy.
The Dow Jones Industrial Average decreased 82.31 points to 44,091.33.
The S&P 500 removed 23.6 points to 6,306.34
The NASDAQ plunged 92.24 points to 20,961.34
The market has seen a whirlwind past few days, with the Dow falling more than 500 points Friday after the latest jobs report signaled that the labor market has been weakening for months. The blue-chip index then recovered those losses Monday, surging almost 600 points.
The indexes took a leg lower Tuesday after the ISM Services index flatlined in July, adding to stagflation concerns that were stirred up in the wake up the recent job figures. Stagflation indicates a scenario of higher inflation and lower employment. Services make up about 70% of the U.S. economy, so a slowdown in the sector could mean trouble ahead.
Stocks were also bogged down by Trump telling CNBC that tariffs on chips, as well as pharmaceuticals, were coming soon.
Palantir was a bright spot of the day, as shares jumped 6% as the defense technology company said revenue surpassed $1 billion for the first time. On the other hand, major industrial name Caterpillar reported an earnings miss, sending shares lower. Eaton shares also dipped 6% due to disappointing guidance.
Investors on Tuesday will watch for more earnings reports, with names like Snap, Advanced Micro Devices and Rivian scheduled for after the close. Out of the roughly 370 companies in the S&P 500 that have already reported this reporting season, more than 81% have beaten expectations
The 10-year note yield was more than one basis point higher at 4.21%.
Oil prices retreated 93 cents to $65.36 U.S. a barrel.
Gold prices gained $17.70 at $3,444.10 U.S. an ounce.
