
US stocks sink again as more companies detail damage they're taking because of Trump's trade war
Palantir Technologies was one of the heaviest weights on the market after falling 14%. The company, which offers an AI platform for customers, dropped even though it reported a profit for the latest quarter that met analysts' expectations and raised its forecast for revenue over the full year.
AI-related companies have been finding it more difficult recently to convince investors to support their stocks after they've already shot so high. Palantir's stock's price remains near $110, when it was sitting at only $20 less than a year ago.
The only other stock to weigh more heavily on the S&P 500 was Nvidia, the chip company that's become the poster child of the artificial-intelligence frenzy. It fell 0.7%.
The return to Earth for AI stocks is happening as Trump's tariffs change the economic landscape for other companies.
Clorox CEO Linda Rendle said her company saw changes in shopping behavior during the first three months of the year, for example, that led to lower revenue. The company reported both weaker revenue and profit for the latest quarter than analysts expected. Clorox expects the slowdowns to continue in the current quarter, and its stock fell 2.2%. Toymaker Mattel, meanwhile, was swinging between losses and gains after it said it's 'pausing' its financial forecasts for 2025, in part because the 'evolving U.S. tariff landscape' is making it difficult to predict how much U.S. shoppers will spend over the holiday season and the rest of this year.
It was most recently up 4%. It also reported better results for the latest quarter than analysts feared.
Ford Motor said it's expecting to take a $1.5 billion hit this year because of tariffs. Ford said it's also cancelling financial forecasts for the full year because of 'tariff-related uncertainty.'
They're the latest companies to join a lengthening list that have yanked their forecasts for the year given uncertainty about what Trump's on-again, off-again rollout of tariffs will do to the economy. The hope is that Trump will relent on some of his tariffs after reaching trade deals with other countries. Without them, many investors expect the economy to fall into a recession.
Regardless, all the will-he-won't-he uncertainty around tariffs has already made U.S. households more pessimistic about the economy and could affect their long-term plans for purchases. Some companies say they're already seeing impacts to their business from the uncertainty created by tariffs.
DoorDash fell 7.5% after reporting weaker revenue than analysts expected for the latest quarter, though it may have also offered a more encouraging snapshot of how U.S. households are doing. The company said order growth in its U.S. marketplace remained healthy and consistent with average growth over the last year.
Treasury yields were edging lower in the bond market. The yield on the 10-year Treasury slipped to 4.35% from 4.36% late Monday.
The Federal Reserve is beginning a two-day meeting, and it will announce its next move on interest rates Wednesday. Virtually no one expects it to do anything to its main rate, even though Trump has been advocating for cuts.
'While the possibility still exists for potential rate cuts later this year, the economic picture is complicated, and it's too early to know if or when those cuts might happen,' said Michele Raneri, vice president and head of US research and consulting at TransUnion.
Lower interest rates could help goose the economy, but they could also give inflation more fuel. And worries are already simmering that Trump's tariffs could push inflation higher.
Markets were mixed across Europe and Asia. Indexes rose 1.1% in Shanghai and 0.7% in Hong Kong.

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18 minutes ago
Asian shares climb after China and the US say they have a framework for seeking a trade deal
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18 minutes ago
- Yahoo
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Let's take a closer look to see what the different types of shareholders can tell us about Kossan Rubber Industries Bhd. See our latest analysis for Kossan Rubber Industries Bhd Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in Kossan Rubber Industries Bhd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. 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Quite a few analysts cover the stock, so you could look into forecast growth quite easily. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. It seems insiders own a significant proportion of Kossan Rubber Industries Bhd. It is very interesting to see that insiders have a meaningful RM608m stake in this RM4.3b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling. The general public, who are usually individual investors, hold a 21% stake in Kossan Rubber Industries Bhd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. We can see that Private Companies own 36%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. It's always worth thinking about the different groups who own shares in a company. But to understand Kossan Rubber Industries Bhd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Kossan Rubber Industries Bhd , and understanding them should be part of your investment process. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio


Business Insider
22 minutes ago
- Business Insider
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