The S&P 500 closed 0.30% lower on Tuesday at 6,370.86 as trade progress with Beijing stalled and investors braced for the Federal Reserve's rate decision. The Dow Jones Industrial Average fell 204.57 points, while the Nasdaq Composite slipped 0.38%, despite both indexes touching fresh all-time highs earlier in the session.
Gold prices edged 0.4% higher to $3,327.69 per ounce on Tuesday. Investors awaited the outcome of U.S.-China trade negotiations and the Fed's policy meeting, seeking a safe haven after a framework trade deal between the U.S. and EU had previously dampened demand for the metal.
The U.S. dollar hit a one-month high against the euro following a string of trade agreements with major partners, including a significant deal with the European Union that imposes 15% import tariffs on most EU goods. Markets remain focused on upcoming interest rate decisions from the Fed and the Bank of Japan.
Asia-Pacific markets traded mixed on Tuesday as investors weighed ongoing trade talks and potential Fed rate cuts. Japan's Nikkei 225 fell 0.79%, while South Korea's Kospi gained 0.66%. Mainland China's CSI 300 ended the day down 0.39%.
High-level trade discussions in Stockholm concluded without an agreement on a tariff pause extension. U.S. negotiators stated that President Trump must sign off on any plan, and the President is expected to receive a full briefing on the status of negotiations on Wednesday.
Britain warned it would recognize a Palestinian state in September unless Israel takes immediate steps to relieve spreading starvation in Gaza and reaches a ceasefire. The warning follows reports that more than 60,000 Palestinians have been confirmed killed in the conflict.
Treasury Secretary Scott Bessent attempted to reassure businesses facing an August 1 tariff deadline, suggesting that "snapback tariffs" might only last a few weeks. However, import-dependent companies continue to struggle with the evolving timelines of the administration's tariff policies.
The financial sector is on high alert after a fatal shooting in the lobby of Blackstone's global headquarters. Wesley LePatner, a rising star in private markets, was among those killed in a spree that has sparked new alarm across New York's financial community.
PayPal shares dropped more than 8% after reporting slowing growth in transaction margin dollars, a key profitability metric. While revenue increased 5% to $7.89 billion, branded checkout volumes and rising operating expenses concerned investors.
Shares of Novo Nordisk plummeted 23% after the company slashed its full-year guidance, citing weaker growth expectations for its obesity drug Wegovy in the U.S. The company also announced company veteran Maziar Mike Doustdar as the new CEO.
Boeing's quarterly loss more than halved as the company ramped up jet deliveries, signaling a recovery from production halts. Despite the smaller-than-expected loss, shares closed down 4.4% on Tuesday as the company continues to work through quality issues.
Palo Alto Networks is reportedly in talks to acquire CyberArk Software for more than $20 billion. Following the news, CyberArk shares surged 13%, while Palo Alto shares fell 2%, reflecting the reshaped competitive landscape of cybersecurity platforms.