NEW YORK: The Nasdaq slipped from its record high as investors braced for earnings reports from tech giants Alphabet and Tesla.
Meanwhile, European markets remained cautious ahead of an August 1 deadline for the EU to avoid steep US tariffs.
The Dow and S&P 500 closed higher, but the Nasdaq fell 0.4 percent, ending a six-day streak of record highs.
Alphabet and Tesla, part of Wall Street’s “Magnificent Seven,“ will report earnings on Wednesday, with Apple and Meta set to follow next week.
Corporate earnings have so far shown resilience in the US economy, though Trump’s tariffs on major trading partners have impacted sectors like automobiles.
Art Hogan of B. Riley Wealth Management noted that Tuesday’s dip in Nvidia and other tech stocks suggested profit-taking after recent gains.
“It’s a difficult earnings season where expectations are really low but stocks are already priced very high,“ Hogan said.
In Europe, only London ended in positive territory, while Paris and Frankfurt declined.
The EU faces potential tariffs if no deal is reached with the Trump administration by August 1.
“European markets have been getting increasingly jittery as the deadline approaches,“ said David Morrison of Trade Nation.
“With little sign of progress so far, investors are preparing for possible tariff retaliation from the EU.”
US Treasury Secretary Scott Bessent will meet Chinese officials in Stockholm next week for tariff talks, as another mid-August deadline looms for US tariffs on China.
Big Earnings Reports
General Motors reported a 35 percent drop in second-quarter profits, hit by $1.1 billion in US tariffs, though it maintained its full-year forecast. Its shares fell 8.1 percent.
“Expectations for the earnings season include accelerated profit growth for major US technology companies in the second half of the year,“ said Jochen Stanzl of CMC Markets.
AstraZeneca announced a $50 billion US investment by 2030 amid tariff threats on pharmaceuticals.
The dollar weakened further, while oil prices dropped on concerns over slowing global economic activity.
In Asia, Hong Kong’s index hit its highest close since late 2021, fueled by Chinese tech stocks and mainland investor inflows.
Tokyo dipped after Japan’s ruling coalition lost its upper-house majority, raising political uncertainty. - AFP
