Wall Street Drops as Earnings Disappoint, Fed Eyed

The U.S. stock market declined on Tuesday because weak earnings reports from major companies combined with Federal Reserve policy decisions became the main focus of investors. The S&P 500 index declined by 0.23% while the Nasdaq dropped 0.28% and the Dow lost 0.44% as it stayed 460 points below its all-time peak.

The stock market experienced negative sentiment because UnitedHealth and Boeing reported disappointing financial results as Dow constituents. UnitedHealth stock prices dropped 5.1% because of its unfavorable profit forecast and Boeing stock prices decreased 3.7% despite reporting a smaller-than-expected loss. UnitedHealth’s stock price has decreased by approximately 50% throughout the current year.

The stock price of UPS dropped 9.3% after the company failed to meet its second-quarter profit expectations because Trump's tariff policies created disruptions in global logistics operations. The stock price of Whirlpool declined by 10.8% because the company reduced its dividend payment and lowered its annual earnings forecast due to inflation and trade policy effects.

The transport-heavy Dow Jones Transport Average dropped 2.1% to become the lowest point in a week which indicates industrial momentum is slowing down.

Consumer confidence in July experienced an unexpected increase to 97.2 despite the market decline. The June employment data showed decreased job openings and hiring numbers which indicated a slowing labor market.

The market waits for the Federal Reserve to provide its decisions which will take place later today. The U.S.-EU trade agreement which reduced import tariffs to 15% has created optimism about future trade deals before Trump's August 1 trade deadline.