Wall Street Wavers as Trade War Uncertainty Grows/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks edged lower Tuesday as corporate profits continued rising, but trade war uncertainty undercut market confidence. Major companies like UPS and GM beat earnings expectations but warned about economic risks. Consumer confidence plummeted to its lowest level since 2011.
Wall Street Struggles Amid Trade Fears: Quick Looks
- S&P 500 dips 0.2%; Nasdaq down 0.2%; Dow up slightly.
- UPS, GM, and JetBlue post strong profits but warn of uncertainty.
- UPS plans 20,000 job cuts and 73 facility closures.
- Consumer confidence sinks to lowest since 2011.
- Treasury yields fall as weak data fuels hopes for Fed rate cuts.
- Trump expected to ease 25% auto tariffs with new executive order.
- Honeywell and Sherwin-Williams post better-than-expected earnings.
- Global stock markets show mixed performance across Europe and Asia.
Wall Street Wavers as Trade War Uncertainty Grows
Deep Look
Wall Street Slips as Corporate Profits Soar and Trade Worries Deepen
NEW YORK — U.S. stocks slipped Tuesday, struggling to maintain recent momentum as strong corporate earnings clashed with growing fears over President Donald Trump’s ongoing trade war.
The S&P 500 lost 0.2% after a five-day winning streak, while the Dow Jones Industrial Average edged up 28 points, or 0.1%. The Nasdaq Composite fell 0.2%, reflecting investor unease about long-term economic stability.
Strong Earnings, Weak Outlooks
UPS, a global shipping bellwether, delivered stronger-than-expected profits but refused to update its financial outlook for 2025 due to “macro-economic uncertainty.
” The company plans to cut 20,000 jobs and close 73 buildings as it braces for tougher conditions.
General Motors also exceeded earnings forecasts but delayed its investor call, citing the need to reassess its 2025 projections after Trump announced upcoming adjustments to his 25% auto tariffs.
JetBlue, while posting a surprise quarterly profit, withdrew its full-year guidance amid what CEO Joanna Geraghty called a “highly uncertain” economic environment.
Even companies that posted robust results, like Honeywell and Sherwin-Williams, issued cautious notes. Honeywell raised its full-year profit forecast but warned about a potential global demand slowdown, while Sherwin-Williams said customer softness could linger into late 2025.
Coca-Cola reported better-than-expected earnings, noting that tariffs should have only a “manageable” impact on its operations, but it left core revenue growth forecasts unchanged.
Tariffs Rattle Confidence and Markets
The broader market mood is increasingly fragile. Trump’s aggressive tariff strategy — and the uncertainty surrounding it — is rattling consumers and corporate leaders alike.
The Conference Board’s latest survey showed U.S. consumer confidence plummeting to its lowest level since 2011. Americans’ expectations for income, business conditions, and jobs also fell below the threshold that typically signals a coming recession.
Treasury Secretary Scott Bessent defended Trump’s approach, calling it “strategic uncertainty” designed to pressure trading partners into more favorable deals.
The bond market reflected the tension. Treasury yields fell again, with the 10-year yield slipping to 4.17% from 4.23%. Weak consumer confidence and a disappointing jobs openings report have fueled speculation that the Federal Reserve may cut interest rates sooner than anticipated to protect growth.
Auto Industry Braces for Tariff Relief
In a surprise move, White House Press Secretary Karoline Leavitt said Trump will sign an executive order Tuesday to soften some auto tariffs, aiming to help automakers and prevent further economic fallout.
Still, analysts warn that broader tariff tensions and rising consumer pessimism could weigh heavily on growth through the rest of 2025 — and Wall Street seems to be grappling with that new reality.
Global Markets Mixed
International markets showed modest movements. European indexes were mostly flat, and Asian markets were mixed, offering little direction for U.S. investors.
As corporate earnings season marches on, investors are caught between strong bottom lines today and growing risks that tomorrow’s economy could look very different.
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