🚀 S&P falls due to tariff threats

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. The S&P 500 fell 0.49% on Tuesday as investors absorbed weaker economic data and fresh tariff threats from President Trump, reigniting concerns about stagflation, a mix of slowing growth and persistent inflation. The ISM Services index flatlined in July, signalling trouble in a sector that accounts for 70% of the U.S. economy, while Trump hinted at upcoming tariffs on chips and pharmaceuticals. Palantir bucked the trend, jumping 7% after surpassing $1 billion in annual revenue, but Eaton slumped 7% on weak guidance, and Caterpillar wavered after missing earnings. Despite the pullback, analysts say that falling inflation and interest rates, alongside rising earnings, could keep the market in risk-on mode.

2. President Trump claimed Tuesday that JPMorgan Chase and Bank of America rejected him as a customer, alleging political bias and reviving broader conservative complaints about “de-banking.” Trump said JPMorgan gave him 20 days to move “hundreds of millions” and that BofA refused to open an account for “a billion dollars-plus.” Both banks deny political motivation, citing regulatory compliance obligations. The Trump administration is drafting an executive order to fine banks that drop customers over political issues, while industry groups blame “regulatory overreach.” Bank CEOs say they welcome reform but must navigate complex rules, especially post-Jan. 6 and amid heightened scrutiny.

3. President Trump said Tuesday that he plans to start with a “small tariff” on pharmaceutical imports but could increase it to 150% within a year and as high as 250%, the steepest tariff threat he has made to date. Framing the move as a national security issue, Trump said the goal is to bring drug manufacturing back to the U.S., citing a decades-long decline in domestic production. Industry leaders warn the tariffs could disrupt supply chains, raise costs, and hinder R&D, compounding pressure from Trump’s revived “most favoured nation” pricing policy and letters demanding lower prices for Medicaid patients by late September.

   Headlines

   1. Lucid lowered its projections after missing Q2 earnings expectations.

   2. Coinbase was down on Tuesday as investors moved away from higher-risk stocks.

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