Wall Street delivered a mixed session on Tuesday as traders digested a wave of earnings and tariff news while awaiting key tech results. The S&P 500 edged 0.06% higher to close at 6,309.62, its 11th record close this year. The Dow Jones Industrial Average rose 179 points, or 0.40%, to 44,502.44. But the Nasdaq Composite fell 0.39% to 20,892.69, dragged down by tech-sector weakness. It marked the first negative day for the tech-heavy index in seven sessions.
Tech stumbles amid AI concerns and earnings misses
Semiconductor stocks were hit particularly hard after The Wall Street Journal reported that SoftBank and OpenAI’s US$500bn AI infrastructure project has been scaled back. Broadcom fell more than 3%, Nvidia dropped over 2%, and Taiwan Semiconductor Manufacturing lost nearly 2%.
Earnings disappointments added to the pressure. Lockheed Martin plunged nearly 11% after missing revenue expectations for the second quarter. Tobacco giant Philip Morris also fell 8% on a revenue shortfall.
Healthcare and small caps offset losses
Despite the tech slump, other sectors helped balance the market. Healthcare led gains, rising nearly 2%. IQVIA surged 18% after beating on both earnings and revenue, leading the S&P 500 for the day. Amgen and Merck also contributed to the sector’s outperformance. The Russell 2000 index of small caps jumped 0.8%, signalling broader investor interest beyond megacap names.
Earnings season: early beats, major names ahead
According to FactSet, nearly 90 S&P 500 companies have reported so far, with almost 85% topping analyst estimates. Still, investors are closely watching for company guidance on macroeconomic risks, tariffs, and AI-related spending.
The spotlight now turns to Alphabet and Tesla, both reporting after Wednesday’s closing bell in New York (early Thursday AEST). These are the first of the so-called “Magnificent Seven” to report June-quarter results. Their performance could set the tone for the rest of earnings season.
Tariff moves and technical outlook
On the policy front, US Treasury Secretary Scott Bessent said the US may extend its China trade deadline and is planning talks in Stockholm next week. Separately, President Donald Trump claimed a new trade deal with the Philippines had been concluded, featuring a 19% tariff on imported goods, though Manila has yet to confirm the deal.
Local outlook and market snapshot
Australian shares are set to open higher, with SPI 200 futures pointing to a 39-point gain, or 0.45%, to 8,680. Local investors will be watching results from Iluka Resources, Woodside Energy, and Paladin Energy.
