Stocks on Wall Street presented a varied picture on July 22, with significant setbacks in General Motors (GM) and a surge in Tesla, as market participants homed in on freshly released, along with imminent quarterly reports, at the same time maintaining a keen eye on potential advancements in U.S. trade negotiations. GM suffered a steep fall following their disclosure of a $1 billion impact from levies on their quarterly earnings, fuelling already prevalent anxieties regarding U.S. President Donald Trump’s global trade approach amongst investors. Concurrently, Ford Motor’s stocks also experienced a downward trajectory.
In stark contrast, Tesla saw a positive momentum, increasing its market value just before the release of its quarterly financial statements. Alphabet, preparing to report its quarterly finances the subsequent day, also recorded a rise. Encouraging predictions surrounding substantial investment in artificial intelligence have acted as propellants for a market upturn in Wall Street’s most influential firms, with the S&P 500 oscillating around record peaks.
Contrarily, several other top-tier tech companies saw their stocks falter, with Meta Platforms and Microsoft both concluding the day on a down note. Despite substantial orders for its engines and aftermarket services, Raytheon Technologies (RTX) felt the shockwaves of the market’s fluctuation as its stocks took a downturn in the aftermath of President Trump’s trade conflict.
Dealing a further blow to the industry, Lockheed Martin’s stocks saw a notable dip following a nearly 80% drop in its profits for the quarter. As President Trump’s self-set deadline of August 1 for most nations to solidify agreements with the White House draws near, U.S. trade policy continues to be a significant ambiguity for businesses and investors alike.
U.S. Treasury Secretary Scott Bessent announced plans to convene with his Chinese counterpart in the coming week to consider a possible extension for the August 12 limit set for import tariffs from China. However, other trade dialogues seem to have reached a standstill, with hopes dwindling for a profitable agreement with India. Meanwhile, EU officials are mulling over potential retaliatory action against the United States.
According to initial data, the S&P 500 collected a modest gain of 4.30 points or a mere 0.07% increase, concluding at 6,309.90 points. On the other hand, the Nasdaq Composite index fell by 81.24 points, representing a 0.39% dip to 20,892.93. The Dow Jones Industrial Average noted an upward move, climbing 175.77 points or a 0.40% hike, settling at 44,498.84.
Philip Morris, a key player in the tobacco industry, saw a downturn after declaring a lower-than-projected second-quarter revenue. The subpar shipments of its ZYN nicotine pouches played a primary role in this disappointment, leading to diminished investor faith.
Market analysts, on average, predicted a 7% rise in earnings for S&P 500 companies in the second quarter of the year, attributing much of the anticipated growth to technology giants. Following the diverse range of economic data published last week, traders have largely discounted the possibility of an interest rate reduction from the U.S. Federal Reserve at the upcoming policy meeting.
Instead, the market is leaning towards a 60% probability of such a cutback taking place in September. The developments on Wall Street, as such, continue to be contingent on an extensive range of regional and global factors, highlighting the interconnected nature of today’s financial markets.
The post GM Stumbles While Tesla Surges amid Trade Tensions appeared first on Real News Now.
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