Investing.com -- The S&P 500 fell Tuesday, snapping a six-day win streak, as the tech rally took a breather.
At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average fell 114 points, or 0.3%, the S&P 500 index slipped 0.4%, and the NASDAQ Composite dropped 0.4%.
Home Depot reaffirms its FY guidance; Tesla climbs on Musk commitment
Investors have been studying earnings from the retail sector Monday, with these numbers providing some clues about the strength of the U.S. economy.
Home Depot (NYSE:HD) stock fell Tuesday even after the world’s largest home improvement retailer reaffirmed its full-year outlook, reporting first quarter fiscal 2025 results that exceeded revenue expectations. CFO Richard McPhail also indicated that the retail giant doesn’t plan to increase prices due to tariffs.
This followed peer Walmart (NYSE:WMT) stating last week that it would likely hike prices soon due to cost pressures from the U.S. government’s aggressive tariff agenda, much to President Donald Trump’s chagrin.
Homebuilder Toll Brothers (NYSE:TOL) will release its quarterly report after the market closes.
Tesla Inc (NASDAQ:TSLA) gave up some gains but closed slightly higher after CEO Elon Musk said he is planned to lead the company for the next five years, citing the importance of maintaining control over the future of the company,
Tax bill in focus after House committee approval; Fed speak
A special committee in the House of Representatives approved a sweeping tax cut bill on Sunday, potentially setting it up for a vote this week.
The bill is backed by Trump and proposes a host of income tax cuts, as well as more spending on defense and immigration.
But critics of the bill have argued that it could increase the U.S. fiscal deficit and undermine federal revenue, at a time when the deficit is already at record highs.
The bill has been opposed by moderates and less hardline Republicans.
On monetary policy, Fed speaks continued to signal a prolonged pause on rates. St. Louis Fed President Alberto Musalem said Tuesday that Monetary policy is currently well positioned, and downplayed the inflation impact of tariffs as a temporary boost.
Trade deals sought
Since the announcement of an agreement between the U.S. and China last week, investors have been eagerly awaiting more trade developments, with trade talks between Japan and the U.S. set to take place later this week, Japan’s Kyodo News agency reported on Tuesday.
However, the U.S. Treasury Department does not expect to reveal any trade deals at a meeting of Group of Seven finance ministers in Canada this week, Reuters has reported.
Additionally, China’s Ministry of Commerce warned on Monday that Washington was undermining recent trade talks in Geneva, especially after the U.S. Department of Commerce issued a warning on using Huawei chips.
The commerce department had last week warned of risks from using Huawei Ascend chips, and that the chips violated U.S. export restrictions.
China warned that the U.S. actions "seriously undermined the consensus reached at the China-U.S. high-level talks in Geneva, and demanded that the U.S. correct its mistakes," a translation of a Commerce Ministry statement showed.