Wall Street ends lower as investors consider tariff impact on results, economy
Tue August 5, 2025 4:57 PM
After yesterday’s huge rally, investors took a pause today with all indexes closing modestly in the red. With today’s Q2, tariffs are very much back on the front-burner due to the fact that company after company, though turning in good reports, are also issuing warnings that duties are already increasing costs and are trimming their forecasts for Q3 and Q4. Company after company is warning that higher costs are just going to keep going higher resulting in higher prices and fewer sales, thus lower revenues and profits. More Q2 from major companies like Disney and McDonalds coming Wednesday. Q2 is winding down and though it’s been largely positive with 80% of companies beating estimates, the overall message is that it’s not going to last. We’re heading for a poor second-half.
The services sector today also stalled, again because of import taxes raising costs. Trump also announced still more tariffs on Tuesday, especially on pharmaceuticals and semiconductors. On the plus side, “Today’s market action reflects investors are merely in pause mode and that the backdrop for equities remains constructive for the year.” On the minus side, “The impact of tariffs remains a work in progress. We’re not seeing any meaningful impact on company profitability with tariffs. We do know, however, that they loom.” Once again, volume is well below the average of 18.33, coming in at 16.29 billion.
DJ: 44,173.64 +585.06 NAS: 21,053.58
+403.45 S&P: 6,329.94
+91.93 8/4
DJ: 44,111.74 -61.90 NAS: 30,916.55
-137.03 S&P: 6,299.19
-30.75 8/5
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