Live Markets: Weak data, tariff worries sour Wall Street's mood

Vertex Pharmaceuticals

05/08/2025 21:39

Nasdaq off ~0.65%, S&P 500 off ~0.49%, Dow off 0.14%

Materials leads S&P sector gains; Utilities biggest loser

Dollar, gold up slightly; bitcoin down ~1%; crude off >1.5%

US 10-Year Treasury yield edges up to ~4.21%

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WEAK DATA, TARIFF WORRIES SOUR WALL STREET'S MOOD

Wall Street's main stock indexes lost ground on Tuesday after mixed economic data, while investors monitored earnings reports and the latest trade news with U.S. President Donald Trump threatening hefty tariffs on U.S. pharmaceutical imports.

Companies from different industries revealed pressure from Trump's tariff wars, with Caterpillar CAT.N, Marriott MAR.O and others noting weaker demand and higher prices. Higher ingredient costs ate into profits at Taco Bell parent Yum Brands YUM.N and Molson Coors forecast rising costs in the second half of the year from tariff-driven increases to aluminum prices.

Earlier in the day, data showed that U.S. services sector activity unexpectedly flatlined in July with little change in orders and a further weakening in employment even as input costs climbed by the most in nearly three years, underscoring ongoing uncertainty for businesses from Trump's trade policies.

Separately, the U.S. trade deficit narrowed in June on a sharp drop in consumer goods imports, while the trade gap with China shrank to its lowest in more than 21 years due to the impact of tariffs.

Potentially providing some support, however, was San Francisco Federal Reserve Bank President Mary Daly's comment that with mounting evidence of a softening U.S. job market and no signs of persistent tariff-driven inflation, the time was nearing for interest rate cuts.

Shares of Advanced Micro Devices AMD.O ended down 1.4% ahead of its quarterly results due after the bell with investors anxious to hear about AI chip demand and the company's revenue outlook.

Among the S&P 500's .SPX 11 major sectors, four closed higher with materials .SPLRCM leading gains, up 0.8%, and utilities .SPLRCU at the rear, down ~1%.

The biggest drags on the benchmark S&P 500 included megacaps Microsoft MSFT.O, Nvidia NVDA.O and Meta Platforms META.O.

Next was Vertex Pharmaceuticals VRTX.O, which tumbled 20.6% and hit its lowest level since Dec 2023, after its pain drug failed a mid-stage trial.

The benchmark's biggest boost came from Palantir PLTR.O, which rose 7.8%, after its bullish outlook wowed investors.

Here is your closing snapshot:

(Sinéad Carew)
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EARLIER ON LIVE MARKETS:

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CRYPTO MINER MARA, PARAMOUNT TOP THE HIGHLY-SHORTED CHARTS CLICK HERE

WALL STREET IS RED IN RESPONSE TO DATA, EARNINGS CLICK HERE

IS MOMENTUM COMING UP LAME? CLICK HERE

PHARMA FACES U.S. PRICING FOG, NOT EARNINGS SHOCK – UBS CLICK HERE

WHEN THE FED CUTS, THE ROOF RISES: BCA BETS BIG ON REAL ESTATE CLICK HERE

TIME TO HEDGE EXPOSURE TO EURO ZONE BANKS: CLICK HERE

CROWDED TRADES, THIN ICE: KAIROS EYES 5–8% PULLBACK CLICK HERE

STOXX 600 CONTINUES CAUTIOUS REBOUND CLICK HERE

EUROPE BEFORE THE BELL: THE COMEBACK CONTINUES CLICK HERE

BAD NEWS IS GOOD NEWS FOR MARKETS CRAVING FED 'ROCKET FUEL' CLICK HERE

Wall Street ends lower https://tmsnrt.rs/45ChQkD