Indexes slip as investors consider tariff impact
Investors digested comments from several companies on tariffs. Shares of KFC parent Yum Brands (YUM.N), opens new tab were down 4.8% after the company missed estimates for the second quarter, as steep trade duties restricted consumer spending. Caterpillar (CAT.N), opens new tab warned of an up to $1.5 billion hit in 2025, but its shares were up 0.2%.
Trump also signaled an announcement on tariffs on semiconductors and chips in the "next week or so."
The S&P 500 technology (.SPLRCT), opens new tab index was down 0.3% and the Philadelphia Semiconductor Index (.SOX), opens new tab was down 0.6%.
"Today's market action reflects investors that are merely in pause mode," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota.
While the backdrop for equities remains constructive for the year, "clearly near-term there are some headwinds," he said, including elevated valuations given recent record highs in the S&P 500.
"The impact of tariffs remains a work in progress," he noted.
Earlier in the day, data showed ISM's nonmanufacturing purchasing managers index (PMI) slipped to 50.1 last month from 50.8 in June, as little changes in orders and weaker hiring, alongside rising input costs.
The Dow Jones Industrial Average (.DJI), opens new tab fell 54.49 points, or 0.12%, to 44,120.40, the S&P 500 (.SPX), opens new tab lost 24.25 points, or 0.38%, to 6,305.69 and the Nasdaq Composite (.IXIC), opens new tab lost 106.49 points, or 0.51%, to 20,947.19.
Shares of Marriott International (MAR.O), opens new tab were down 0.2% after it cut its annual forecast on slowing travel demand.
Stocks sold off on Friday after a disappointing July jobs data and sharp downward revisions to prior months, but indexes bounced back on Monday.
Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the NYSE. There were 141 new highs and 59 new lows on the NYSE.
On the Nasdaq, 1,989 stocks rose and 2,476 fell as declining issues outnumbered advancers by a 1.24-to-1 ratio.
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The Independent
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- The Independent
Trump's planned 100% computer chip tariff sparks confusion among businesses and trading partners
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BBC News
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Reuters
17 minutes ago
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