Nasdaq, S&P 500 slide amid wave of earnings as tariffs bite GM profit

US stocks were mixed on Tuesday after notching new all-time highs the prior day, as Wall Street waded through a fresh wave of earnings that brought a tariff warning from General Motors (GM).

The Nasdaq Composite (^IXIC) dropped 0.4% ahead of the first Big Tech quarterly results, and the S&P 500 (^GSPC) fell 0.1%. Meanwhile, the Dow Jones Industrial Average (^DJI) climbed around 0.1%.

The market has so far proven resilient in the face of tariff uncertainty, with the S&P 500 and Nasdaq Composite hitting fresh record closes on Monday. Earnings season has been largely upbeat, buoying stocks and sentiment — though the market is now weighing how far the recent rally can run.

Earnings results from a wave of companies on Tuesday were mixed. The stocks of General Motors (GM), Philip Morris (PM), RTX (RTX), and Lockheed Martin (LMT) sank after their quarterly results disappointed Wall Street.

General Motors reported that its core profit sank over 32% in the second quarter as tariff headwinds sapped $1.1 billion from its results. The Big Three automaker warned the hit would be deeper in the current quarter, providing food for thought to investors assessing the impact of President Trump's trade policy.

At the same time, Wall Street is keenly waiting for second-quarter results from “Magnificent Seven” members Alphabet (GOOGL, GOOG) and Tesla (TSLA) on Wednesday. As the valuation of large-cap tech stocks soars, investors are hoping for reassurance that the hype around AI is more than just buzz.

The watch is on for signs of progress in trade talks as the clock ticks down to President Trump's Aug. 1 deadline to strike a deal or face higher tariffs. Prospects for a US-India pact appear to be faltering with negotiations deadlocked, as US talks with the EU, another key trading partner, also hit the buffers.

Jerome Powell's speech Tuesday morning is also in high focus as the Federal Reserve chair comes under pressure from Trump to step down. While investors will scour his comments for insight into tariff risks to the US economy, Powell is expected to focus on regulatory issues rather than monetary policy in the blackout period ahead of the Fed's July meeting.

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Nvidia falls for third day after record rally

Nvidia (NVDA) shares fell around 2% late Tuesday morning, marking the third day of declines for the AI chipmaker after it rallied to fresh all-time highs last week.

The drop comes as a burgeoning South Korean chipmaking rival FuriosaAI scored its first major customer.

Despite the drop, Nvidia is up around 24% for the year as the stock has undergone a remarkable turnaround following its first quarter earnings in May after a rocky start to 2025.

Its most recent rally last week came on the heels of the chipmaker’s announcement that it was set to resume sales of its AI chips to China — a major reversal after a surprise export ban from the Trump administration in April was on track to result in billions in lost sales.

Also on Tuesday, startup Reka AI announced that Nvidia, along with Snowflake, was part of a group to invest $110 million in the company during its latest funding round. Nvidia has invested in a number of AI companies, including OpenAI, Elon Musk’s xAI, Inflection, Scale AI, and more.
Kohl's surges nearly 30% as retail investors boost stock

Kohl's (KSS) stock jumped nearly 30% Tuesday morning, with trading briefly halted for volatility after shares jumped as much as 105% earlier in the session.

The notorious subreddit for meme traders, r/wallstreetbets, was buzzing with users posting about their trades of the stock Tuesday morning, and it was also trending on the popular forum for retail investors, Stocktwits.
Northrop Grumman stock pops after boost to 2025 profit outlook

Northrop Grumman's (NOC) shares jumped over 9% after it raised its full-year forecast on the heels of strong quarterly profit and revenue beats.

The aerospace and defense giant has lifted its outlook as geopolitical tensions sustain demand for its defense products. Beyond that, the company is in talks to support the planned Golden Dome missile system. The Trump administration is searching for new partners for the project as tensions with Elon Musk threaten SpaceX's dominance, Reuters reported.

Northrop Grumman reported second quarter earnings of $8.15 a share, versus $6.82 expected. Revenue came in at $10.35 billion, well above the $10.05 billion consensus view.

Reuters reported:

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Circle stocks extends decline after analyst downgrade

Circle shares fell more than 7% Tuesday morning, extending its 3.4% drop the day prior. The declines come as the stablecoin issuer’s stock was downgraded to Sell from Neutral at investment bank Compass Point following the passage of the first federal framework for dollar-backed stablecoins last week.

“While we expected CRCL to rally into stablecoin legislation, crypto investors typically ‘sell the news’ after highly anticipated events,” Compass Point analyst Ed Engel wrote in a note to investors Monday. “As such, we expect CRCL to retrace some of its recent rally after the GENIUS act was signed into law on 7/18.”

Engel also cited “emerging competition from banks and fintechs” following the passage of the GENIUS Act. “We expect more mainstream fintechs and banks to announce competing stablecoins in 2H25 [the second half of 2025],” he wrote, adding that “many mainstream businesses have wider distribution networks than CRCL.”
US stocks mixed at the open

US stocks wavered on Tuesday after hitting new all-time highs the day prior, as Wall Street waded through a fresh wave of earnings.

The Dow Jones Industrial Average (^DJI) rose nearly 0.1%.

Meanwhile, the S&P 500 (^GSPC) traded roughly flat. The Nasdaq Composite (^IXIC) slipped 0.1% ahead of the first Big Tech quarterly results Wednesday from Alphabet (GOOGL, GOOG) and Tesla (TSLA).

The stocks of General Motors's (GM), Philip Morris (PM), RTX (RTX), and Lockheed Martin (LMT) sank after their quarterly results disappointed Wall Street. Coca-Cola (KO) shares dropped despite reporting earnings that topped forecasts.
Bessent calls for internal review of Fed but doesn't think Powell needs to step down

Yahoo Finance's David Hollerith reports:

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Wall Street is being stubbornly bullish on downtrodden energy stocks

Wall Street analysts have high hopes for oil and gas stocks, encouraged by cheap valuations and President Trump’s full-throated support for the beleaguered energy sector.

Bloomberg reports:

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Coca-Cola tops Q2 estimates on steady soda demand, plans cane sugar-based products

Coca-Cola (KO) beat Wall Street's second quarter revenue and profit estimates on Tuesday, as steady soda demand and higher prices boosted profits.

But the stock was down about 1% in premarket trading, as case volumes fell overall.

Notably, the company said it plans to launch an offering made with US cane sugar under its trademark Coca-Cola product range this fall. In recent days, President Trump said that the company agreed to use cane sugar in its products, which Coke didn't confirm at the time.

Here's what Coca-Cola reported, per Reuters:

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Lockheed Martin Q2 profit plummets on $1.6 billion charge

Lockheed Martin (LMT) stock fell 6% premarket after the defense giant recorded pre-tax losses of $1.6 billion, mainly linked to a classified program within its Aeronautics segment.

Reuters reports:

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GM stock falls as Trump tariffs take $1B bite out of earnings

US automaker General Motors (GM) stock fell over 3% before the bell on Tuesday after reporting a fall in second quarter core profit of 32% to $3 billion. The automaker said tariffs have sapped $1.1 billion from results as it continues to grapple with President Trump's challenging trade war.

Reuters reports:

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Trump Media stock tests the limits of bitcoin accumulation

Yahoo Finance's Hamza Shaban reports in today's Morning Brief:

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Chipmaker NXP's stock falls as forecast fails to impress investors

Dutch chipmaker NXP (NXPI) disappointed investors with a less-than-bullish revenue outlook for the next quarter, sending its stock sliding almost 6% in premarket trade.

Bloomberg reports:

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Good morning. Here's what's happening today.
Trending tickers: Nvidia, Oracle and Medpace

Here are some top stocks trending on Yahoo Finance in premarket trading:

Nvidia (NVDA) stock fell over 1% premarket following news that FuriosaAI Inc., the Seoul-based startup seeking to design chips to compete with Nvidia (NVDA) Corp., has sealed its first major contract months after rejecting an $800 million acquisition offer from Meta Platforms Inc. (META)

Oracle (ORCL) shares dropped over 2% in premarket trading after it was announced that Stargate, a multi-billion-dollar effort by ChatGPT's creator OpenAI (OPAI.PVT), SoftBank (SFTBY, 9984.T) and Oracle (ORCL) are now setting a more modest goal of building a small data center by the end of the year, according to reports in The Wall Street Journal reported on Monday.

Medpace Holdings, Inc. (MEDP) stock surged over 40% before the bell on Tuesday after exceeding analysts revenue expectations on Monday, with sales up over 14% year on year to $603.3 million.
Oil prices fall as trade war pulls down investor sentiment

Oil prices fell early morning Tuesday as the trade negotiations between the EU and the US continue to impact the economic landscape for crude consumption.

Reuters reports:

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