Stocks slipped Tuesday as fresh economic data reignited stagflation fears on Wall Street, overshadowing a blowout quarter from Palantir Technologies Inc. (NASDAQ:PLTR), the top-performing S&P 500 stock of 2025.
- PLTR’s momentum accelerates. Check the stock chart here.
The July Institute for Supply Management (ISM) Services Purchasing Managers Index (PMI) fell to 50.1%, barely clinging to expansion territory and well below expectations of 51.5%.
More concerning was a sharp jump in service-sector prices: the ISM Prices Index surged to 68.5%, its highest level since November 2022, indicating intensifying inflationary pressures even as activity cools. Meanwhile, the employment momentum further slowed, validating the weak jobs report released last Friday, which President Trump insists, without evidence, was “rigged.”
Despite the macro drag, Palantir delivered a standout performance. The artificial intelligence-driven software company exceeded Wall Street's revenue and earnings forecasts, sending its stock up more than 8%.
The rally pushed its market capitalization above $400 billion for the first time.
Further signs of tariff-driven economic impacts came from the latest trade data. The U.S. trade deficit narrowed sharply to $60.2 billion in June, well below expectations of $61.6 billion and the lowest since September 2023. The drop was driven by a 3.7% decline in imports, which fell to $337.5 billion — their lowest level since March 2024.
The S&P 500 slipped 0.3% to 6,310, while the tech-heavy Nasdaq 100 fell 0.4% to 23,090. In contrast, small-cap stocks outperformed, with the Russell 2000 gaining 0.3%, signaling some resilience among domestically focused companies.
Treasury yields and the U.S. dollar remained flat, with the bond market continuing to price in an almost 90% probability of a 25-basis-point interest rate cut at the Federal Reserve's September meeting.
Rising stagflation concerns pushed gold prices up 0.4% to $3,380 per ounce, while silver rallied over 1% to $37.80.
Meanwhile, Bitcoin (CRYPTO: BTC) slipped 1.7% to $113,000, losing momentum as risk sentiment deteriorated.
Tuesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | Chg % |
| Russell 2000 | 2,218.90 | +0.3% |
| Dow Jones | 44,158.96 | -0.0% |
| S&P 500 | 6,312.52 | -0.3% |
| Nasdaq 100 | 23,095.97 | -0.4% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) eased 0.3% to $578.23.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) edged 0.1% lower to $441.38.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) eased 0.4% to $561.80.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 0.3% to 220.27
- The Materials Select Sector SPDR Fund (NYSE:XLB) outperformed, up 0.5%; the Utilities Select Sector SPDR Fund (NYSE:XLU) was the laggard, down 1.1%.
Tuesday’s Stock Movers
Stocks reacting to earnings reports included:
- Caterpillar Inc. (NYSE:CAT) up 0.8%
- Eaton Corporation plc (NYSE:ETN) down 6.1%
- Pfizer Inc. (NYSE:PFE) up 3.8%
- MercadoLibre, Inc. (NASDAQ:MELI) up 2.1%
- Duke Energy Corporation (NYSE:DUK) up 1.2%
- Apollo Global Management, Inc. (NYSE:APO) up 2.1%
- Marriott International, Inc. (NASDAQ:MAR) up 0.5%
- Axon Enterprise, Inc. (NASDAQ:AXON) up 14.6%
- Zoetis Inc. (NYSE:ZTS) down 2.8%
- Cummins Inc. (NYSE:CMI) up 3.5%
- Marathon Petroleum Corporation (NYSE:MPC) down 0.3%
- Yum! Brands, Inc. (NYSE:YUM) down 2.9%
- Fidelity National Information Services, Inc. (NYSE:FIS) down 8.6%
- Broadridge Financial Solutions, Inc. (NYSE:BR) up 6.9%
- DuPont de Nemours, Inc. (NYSE:DD) up 3.4%
- Archer-Daniels-Midland Company (NYSE:ADM) up 3.5%
- Jacobs Solutions Inc. (NYSE:J) up 3.0%
- BWX Technologies, Inc. (NYSE:BWXT) up 19.4%
- Yum China Holdings, Inc. (NYSE:YUMC) down 4.2%
- Expeditors International of Washington, Inc. (NASDAQ:EXPD) down 0.2%
- Ball Corporation (NYSE:BALL) down 3.4%
- Zebra Technologies Corporation (NASDAQ:ZBRA) down 11.5%
- Hims & Hers Health, Inc. (NYSE:HIMS) down 9.4%
- Molson Coors Beverage Company (NYSE:TAP) up 1.7%
Stocks slated to report earnings after the close include Aflac Inc. (NYSE:AFL), Advanced Micro Devices Inc. (NASDAQ:AMD), Amgen Inc. (NASDAQ:AMGN), Devon Energy Corp. (NYSE:DVN), The Mosaic Co. (NYSE:MOS), Noble Corp. (NYSE:NE), News Corp. (NASDAQ:NWSA), Snap Inc. (NYSE:SNAP) and Skyworks Solutions Inc. (NASDAQ:SWKS).
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