US markets closed lower on Tuesday as investors weighed corporate earnings, soft economic signals, and awaited the Federal Reserve’s rate decision. The S&P 500 fell 0.3%, ending a six-day winning streak. The Nasdaq slipped 0.4% to 21,098.29, while the Dow dropped 200 points, or 0.4%.
Markets remain tense as the Fed’s two-day meeting continues, with rates expected to remain unchanged. Still, any hints of economic weakness could prompt rate cut expectations later this year.
Fresh labor data showed job openings and hiring declined in June, ahead of Friday’s key nonfarm payrolls report. While consumer confidence ticked higher in July, concerns about job availability also rose.
Trade tensions resurfaced as President Trump’s Friday deadline approaches for new global tariff deals. US officials, speaking from Stockholm, hinted Trump will decide soon on extending the current truce with China. Treasury Secretary Scott Bessent floated a possible 90-day extension, citing mostly minor unresolved issues.
In corporate news, Boeing beat earnings forecasts, lifting sentiment briefly. However, weak results from Spotify, Merck, and UnitedHealth dragged on the broader market.