NEW YORK (AP) — U.S. stock indexes are heading for another drop on Tuesday following the latest signal that inflation, tariffs and other policies coming from Washington have U.S. consumers feeling more pessimistic about the economy.
The S&P 500 was down 0.7% in morning trading. It’s coming off a three-day losing streak after setting an all-time high last week. The Dow Jones Industrial Average was down 78 points, or 0.2%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 1.4% lower.
The U.S. stock market has been regressing since last week, following several weaker-than-expected reports on the economy. On Tuesday, the latest report said confidence among U.S. consumers is falling by more than economists expected.
For the first time since June, a measure of consumers’ short-term expectations fell below a threshold usually signals a recession ahead, according to the Conference Board. The increase in pessimism was broad based and carried across ranges of age and income.
“There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019,” according to Stephanie Guichard, senior economist, global indicators at the Conference Board. “Most notably, comments on the current Administration and its policies dominated the responses.”
Some of the heaviest weights on the stock market included high-growth stocks that had been among Wall Street’s biggest stars in recent years. Nvidia fell 3.3%, for example, while Tesla fell 5.8%.
Bitcoin also tumbled, falling back toward $87,000, which dragged down stocks of companies in the crypto industry. MicroStrategy, the company that’s raised money with the express purpose of buying bitcoin and now goes by the name Strategy, fell 9.9%
Zoom Communications dropped 9.3% even though it reported stronger results for the latest quarter than expected. Analysts at UBS pointed to the company’s forecast for revenue growth in the upcoming year, which fell a bit short of their own estimate.
They helped offset a 3% rise for Home Depot, which delivered a stronger profit for the latest quarter than analysts expected. CEO Ted Decker, though, said the retailer is still contending with an uncertain economy and higher interest rates, which hems in customers’ ability to spend on home improvements. The retailer also gave financial forecasts for 2025 that fell short of analysts’ expectations.
Keurig Dr Pepper rose 3.9% after the company behind Snapple, Canada Dry and K-cup coffees reported better results for the end of 2024 than analysts expected. Growth was stronger for its U.S. operations than for its international business, which contended with a heavy drag caused by shifting foreign-currency values.
The pace of profit reports is slowing, but what’s perhaps the most anticipated report is still to come on Wednesday. That’s Nvidia, which has grown to become one of Wall Street’s most influential stocks because of nearly insatiable demand for its chips.
Wednesday will provide the first earnings report for the chip company and its CEO, Jensen Huang, since a Chinese upstart, DeepSeek, upended the artificial-intelligence industry by saying it developed a large language model that can compete with big U.S. rivals without having to use the top-flight, most expensive chips.
That called into question all the spending Wall Street had assumed would go into not only Nvidia’s chips but also the ecosystem that’s built around the AI boom, including electricity to power large data centers.
In the bond market, Treasury yields pulled back as President Donald Trump’s policies continue to reverberate around the world.
Dramatically altering relations under Trump, the United States split with its European allies by refusing to blame Russia for its invasion of Ukraine in votes on three U.N. resolutions Monday seeking an end to the three-year war.
Additionally, Trump has antagonized U.S. trading partners recently, threatening to raise tariffs and inviting them to retaliate with import taxes of their own. Trump said Monday that tariff hikes on imports from Canada and Mexico will move ahead after a one-month delay.
The yield on the 10-year Treasury fell to 4.29% from 4.40% late Monday.
In stock markets abroad, indexes were mixed in Europe after falling across much of Asia. Tokyo’s Nikkei Nikkei 225 lost 1.4% after markets in Japan reopened from a holiday on Monday.
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AP Business Writers Elaine Kurtenbach and Matt Ott contributed.
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