Dow falls after weak economic data, more tariff threats: Live updates
Traders works on the floor of the New York Stock Exchange (NYSE) during morning trading on August 4, 2025, in New York City.
Angela Weiss | Afp | Getty Images
The Dow Jones Industrial Average fell on Tuesday as traders assessed weaker-than-expected economic data and new tariff comments from President Donald Trump.
The blue-chip Dow fell 133 points, or 0.3%. The S&P 500 also dropped 0.2%, while Nasdaq Composite hovered around the flatline.
Palantir shares jumped 8% 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.
The Dow and S&P 500 moved lower earlier in the session after the ISM Services index flatlined in July and indicated higher inflation and lower employment. Services makes 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.
“We’re going to be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States,” Trump said, adding that he’ll announce the new plan “within the next week or so.”
The moves come after a winning day on Wall Street that allowed stocks to recover losses from the prior session. The market tanked on Friday as the latest policy rollout on tariffs and a weak jobs report left investors questioning the health of the economy. All three of the major indexes ended the week in the red.
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, according to FactSet.
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