Investors Uneasy as Stocks Dip Amid Tariff Talks and Fed Meeting

NEW YORK, NY — U.S. stocks closed lower on Tuesday as investors weighed earnings reports and awaited developments regarding tariffs and the outcomes of a Federal Reserve meeting. The Dow Jones Industrial Average fell nearly 400 points, or 1%, closing at 40,829, while the S&P 500 and Nasdaq composite dropped 0.8% and 0.9%, respectively.

These declines came after a losing session on Monday, with the S&P 500 experiencing its first back-to-back losses since early April. Traders were processing the implications of President Trump‘s announcement on tariffs, particularly regarding China, and growing concerns over the future of trade policies.

As the two-day Federal Reserve meeting began, investors were eager for insights on how tariffs might affect the economy and interest rates. While the Fed is expected to maintain the current interest rate, Fed Chair Jerome Powell’s comments on the economy’s outlook will be closely scrutinized.

Companies that released quarterly earnings reports showed mixed results. Palantir Technologies saw its shares plunge 12% despite reporting revenue in line with expectations. Meanwhile, Constellation Energy shares rose more than 10% following strong AI-related electricity demand.

Ford Motor Company shares advanced by 3% after posting quarterly results that exceeded analysts’ forecasts, though the company suspended its full-year guidance amid tariff uncertainties. In contrast, shares of Moderna and Eli Lilly faced declines of 12% and 6%, respectively, amid pressure following the appointment of a new FDA vaccine regulator.

The markets are also reacting to the fluctuations in crude oil prices, which recovered some losses from earlier in the week, while the yield on the 10-year Treasury note decreased to 4.30% from 4.34%.

Overall, the market is closely watching how the ongoing tariff discussions will impact corporate earnings and economic indicators in the coming weeks.