The S&P 500 closed lower on Tuesday after hitting a fresh intraday record, as traders digested a wave of corporate earnings and persistent uncertainty over U.S.-China trade negotiations.

At the 4:00 p.m. ET close, the Dow Jones Industrial Average lost 204 points, or 0.5%. The S&P 500 slipped 0.3% after reaching an intraday all-time high of 6,409.26, while the Nasdaq Composite fell 0.4%.

U.S. equities have been trending higher in recent days following weekend news of a trade agreement between the United States and the European Union.

Trade Talks Remain a Key Focus

Markets kept a close eye on developments in Washington’s ongoing trade talks with Beijing. U.S. Trade Representative Jamieson Greer said Tuesday that negotiations were “heading in the right direction,” though he stopped short of providing details on a potential deal or whether the current tariff truce will be extended.

If no extension is reached, tariffs on Chinese imports could revert to higher April 2 levels. Earlier this year, both nations struck preliminary agreements that helped ease tensions in a trade war marked by escalating tariffs and restrictions on key rare-earth mineral exports.

Fed Meeting Kicks Off

The Federal Reserve began its latest two-day policy meeting Tuesday, with a decision expected Wednesday. Interest rates are widely anticipated to remain at 4.25%–4.5%, but investors will watch for hints on whether cuts could come later this year.

Fed Chair Jerome Powell has maintained a cautious “wait-and-see” stance amid uncertainty over the Trump administration’s trade policies. However, some FOMC members have recently voiced support for easing rates.

President Donald Trump again urged the central bank on Monday to cut rates to help boost economic growth.

The Bank of Japan will also hold a policy meeting Thursday, with no changes expected. On the same day, investors will parse June’s PCE price index—the Fed’s preferred inflation gauge—for further insight into how tariffs may be impacting consumer prices.

This week is also packed with labor market data: JOLTS Job Openings (Tuesday), ADP private payrolls (Wednesday), jobless claims (Thursday), and the July jobs report (Friday).

Earnings Season in Full Swing

This week marks the busiest stretch of earnings season, with more than 150 S&P 500 companies scheduled to release quarterly results. Tech giants from the so-called “Magnificent Seven” are in focus: Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) report Wednesday, followed by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) on Thursday.

Notable stock moves Tuesday included:

• Merck (NYSE:MRK) fell after announcing job and cost cuts designed to save $3 billion annually. Q2 results were weighed down by soft demand for its Gardasil vaccine in China.
• Novo Nordisk (NYSE:NVO) slumped after lowering its full-year sales and profit outlook for the second time in 2025, citing weaker-than-expected demand for its weight-loss drug Wegovy.
• PayPal (NASDAQ:PYPL) declined after guiding for flat quarterly profit compared with last year, despite raising its full-year forecast.
• United Parcel Service (NYSE:UPS) tumbled 10.6% after revenue and profit dropped in Q2 amid weaker demand driven by trade policy volatility.
• UnitedHealth (NYSE:UNH) edged lower after reinstating its full-year profit forecast, which still fell short of analysts’ already-lowered expectations.
• Whirlpool (NYSE:WHR) plunged following disappointing second-quarter earnings and a sharp cut to its 2025 guidance.

Visa (NYSE:V) will report after the closing bell.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.