- S&P 500 retreats from record, Dow falls 200 points with China talks in limbo and Fed decision ahead
The S&P 500 closed lower on Tuesday as progress on trade talks with Beijing stalled and traders braced for the
Federal Reserve’s rate decision. The broad market index lost 0.30%, ending at 6,370.86. The Nasdaq
Composite slipped 0.38%, settling at 21,098.29. Both indexes touched fresh all-time highs earlier in the day.
The Dow Jones Industrial Average fell 204.57 points, or 0.46%, to close at 44,632.99. Selling pressure intensified
in the final hour of trading, at one point bringing the S&P 500 to its session low. Investors trimmed some bets
on risk assets after stocks came roaring back in recent months from their April lows, helped by progress in trade
talks between the U.S., Japan and the European Union. - Gold ticks up with all eyes on U.S.-China talks, Fed meeting
Gold prices edged higher on Tuesday as investors awaited the outcome of U.S.-China trade talks and the
Federal Reserve’s policy meeting. Spot gold rose 0.4% to $3,327.69 per ounce. Prices hit their lowest point
since July 9 on Monday after a framework trade deal between the United States and the European Union
dampened safe-haven demand for the yellow metal. U.S. gold futures settled 0.4% higher at $3,324. China and
the United States will push for the continued pause of U.S. reciprocal tariffs on Chinese goods as well as China’s
countermeasures, top trade negotiator Li Chenggang said after the two sides concluded negotiations in
Stockholm. - Dollar reaches one-month high versus euro on trade deal optimism, Fed in view
The dollar hit a one-month high versus the euro on Tuesday in the wake of a string of trade agreements
between the United States and its major trade partners, while markets await interest rate decisions from the
Federal Reserve and the Bank of Japan. U.S. President Donald Trump struck his biggest trade deal yet with the
European Union on Sunday, which imposes a 15% import tariff on most EU goods and includes $600 billion of
EU investments into the United States. It tops a $550 billion deal signed with Japan last week that includes a
15% reciprocal tariff. - Asian Shares Rise on Trade Truce, Dollar Weakens: Markets Wrap
Asia-Pacific markets traded mixed Tuesday as investors awaited the outcome of the ongoing U.S.-China trade
talks. Investors are also looking ahead to the result of the U.S. Federal Reserve meeting due Wednesday
stateside, where it will make a decision on whether to cut interest rates. Asia markets ended the trading day
mixed. Japan’s Topix lost 0.75% to close at 2,908.64. The country’s benchmark Nikkei 225 declined 0.79% to
end the trading day at 40,674.55. Australia’s S&P/ASX 200 closed flat at 8,704.6. Mainland China’s CSI 300 slid
0.39% to 4,152.02. South Korea’s Kospi rose 0.66% to close at 3,230.57. - U.S.-China trade talks end without extension of tariff truce, as Trump weighs options
A potential extension of a tariff pause between the United States and China will not be agreed to until
President Donald Trump signs off on the plan, U.S. negotiators said Tuesday. The remarks came after top trade
officials for the two countries concluded talks in Stockholm, Sweden, their third round of high-level discussions
since May. “We’re going to head back to Washington, D.C. We’re going to talk to the president about whether
that’s something that he wants so do,” U.S. Trade Representative Jamieson Greer told reporters following the
talks. Trump, speaking to reporters on Air Force One around the same time, said he would get a briefing
Wednesday on the status of the negotiations. - UK plans to recognize Palestinian state in September unless Israel takes action
Britain said on Tuesday it would recognize a Palestinian state unless Israel takes steps to relieve suffering in
Gaza, where starvation is spreading, and reaches a ceasefire in the nearly two-year war with Hamas. The
warning came after a hunger monitor said a worst-case scenario of famine is unfolding and immediate action
is needed to avoid widespread death. Palestinian authorities said more than 60,000 Palestinians were now
confirmed killed by Israel’s air and ground assault on the Gaza Strip. The hunger alert and the new death toll
are grim milestones in a conflict that began almost two years ago when Hamas attacked Israel, sparking an
offensive that has flattened much of the enclave and ignited hostilities across the Middle East. - Bessent to American businesses: ‘Not the end of the world’ if April 2 tariffs kick in
Treasury Secretary Scott Bessent tried to reassure American businesses Tuesday, ahead of President Donald
Trump’s Aug. 1 tariff deadline, downplaying the impact of any “snapback tariffs” and suggesting they could be
short-lived. “I would think that it’s not the end of the world if these snapback tariffs are on for anywhere from
a few days to a few weeks,” Bessent replied, “As long as the countries are moving forward and trying to
negotiate in good faith.” For U.S. businesses that could be hit with more tariff hikes starting Friday, however,
Bessent’s suggestion that “it’s not the end of the world” is unlikely to be all that reassuring. The threat of
Trump’s country-specific tariffs has hung over American businesses since he first unveiled them at his April
“Liberation Day” event. And import-dependent U.S. companies are already struggling to keep up with the
evolving timelines and proposed levies of Trump’s rapidly expanding tariff policy. - Companies move to tighten security after fatal shooting in Midtown Manhattan
Wesley LePatner had established herself in the upper echelons of private markets behemoth Blackstone, one
of the most accomplished women in US finance and a rising star in New York’s social and philanthropic circles.
At Blackstone, where the company’s president Jonathan Gray championed her rise, the 43-year-old had been
put in charge of its flagship property fund. The mother of two had recently joined the board of the Metropolitan
Museum of Art and in 2023 received a leadership award from one of New York’s most influential philanthropic
groups, the UJA Federation. On Monday evening, as she left the office, she was fatally shot in the lobby of
Blackstone’s global headquarters, a Park Avenue office tower, one of four killed by a gunman in a spree that
has sparked new alarm across New York’s financial sector. - PayPal stock sinks 8% as company reports slow growth in key margin figure
PayPal reported better-than-expected results for the second quarter but saw slowing growth in transaction
margin dollars, a key measure of profitability. The stock slipped more than 8% following the report. Sales
increased 5% from $7.89 billion a year earlier, as CEO Alex Chriss worked to roll off lower-margin revenue
streams. Transaction margin dollars rose 7% to $3.84 billion, marking the company’s sixth straight quarter of
growth. However, growth in that metric slowed sequentially, down from 8% in the first quarter when excluding
a one-time benefit that boosted results earlier this year. Branded checkout volumes also slowed to 5%,
compared with 6% in the first quarter when adjusted for Leap Day. The company also saw its expenses rise and
cash flow fall. Total operating expenses were $6.78 billion in the quarter, versus $6.26 billion in Q1. - Novo Nordisk shares plunge 23% after Wegovy maker names new CEO, cuts full-year guidance
Danish pharmaceutical giant Novo Nordisk on Tuesday named its new CEO while simultaneously slashing its
full-year guidance, citing weaker growth expectations for its blockbuster Wegovy obesity drug in the key U.S.
market. The drug maker said company veteran Maziar Mike Doustdar would take over as president and CEO
following the surprise ousting in May of Lars Fruergaard Jørgensen. The appointment is effective Aug. 7. Shares
fell as much as 26% before paring losses slightly to close down 23% by 4:30 p.m. London time. The company
said it now expects full-year sales growth of 8% to 14% at constant exchange rates, down from a prior target
of 13% to 21%. It expects annual operating profit growth of 10% to 16% versus the previously estimated target
of 16% to 24%, also at constant exchange rates. Novo Nordisk said Tuesday that the lower outlook was driven
by weaker second-half U.S. sales growth forecasts for its Wegovy weight loss drug and Ozempic diabetes
treatment. - Boeing’s quarterly loss shrinks as jet deliveries rebound, but shares drop
Boeing’s quarterly loss more than halved and was much smaller than analysts expected as the U.S. plane maker
ramped up jet deliveries, recovering from a regulatory crisis and a major strike that halted most production
last year. The results highlighted Boeing’s efforts to cautiously increase monthly output this year, following
years of quality issues and production delays on its flagship 737 MAX. Increased deliveries mark a pivotal step
in Boeing’s effort to rebound from years of production disruptions and crises that piled on debt, increasing the
urgency of accelerating output to restore financial stability. Boeing shares closed down 4.4% on Tuesday. - Palo Alto Networks in talks to buy CyberArk in deal worth over $20 billion
Palo Alto Networks is in talks to acquire CyberArk Software in a deal that could value the Israeli cybersecurity
firm at more than $20 billion, the Wall Street Journal reported on Tuesday, citing people familiar with the
matter. Shares in CyberArk rose about 13%, while Palo Alto Networks stock fell roughly 2%. The Santa Clara,
California-based company could finalize a deal for CyberArk as soon as later this week, the report said. Rising
competition among all-in-one cybersecurity platforms has reshaped the industry, making several companies
attractive takeover targets for larger rivals and private equity firms.
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