U.S. stocks experienced fluctuations on Tuesday as investors awaited updates on tariffs and evaluated corporate earnings. The Dow Jones Industrial Average dropped by 155.83 points, or 0.38%, while the S&P 500 and Nasdaq Composite closed down by 0.17% and 0.05%, respectively. Bank of America reported better-than-expected quarterly results, with CEO Brian Moynihan noting potential economic changes in the future. Shares of Bank of America rose 2% in premarket trading. Citigroup also surpassed Wall Street estimates, with CEO Jane Fraser emphasizing the U.S.’s role as the leading global economy despite trade challenges. Stocks closed higher on Monday following tariff relief on smartphones, chips, and computers. However, shares of GM and Ford fell as investors considered President Trump’s proposed tariff pause. Barclays analyst Dan Levy reduced his estimates for Ford Motor and General Motors’ 2025 operating profits by 60% and 40%, respectively. Other automakers like Toyota, Honda, and Tesla saw gains. Honda is reportedly planning to shift some production from Canada and Mexico to the U.S., aligning with Trump’s tariffs aimed at boosting domestic production. Additionally, Nvidia announced plans to manufacture AI supercomputers in the U.S. for the first time, with expedited permits promised by Trump. Chinese airlines have halted Boeing aircraft deliveries due to U.S. tariffs, impacting maintenance costs. Meanwhile, the Trump administration is investigating semiconductor and pharmaceutical imports, hinting at potential tariffs. A lawsuit has been filed challenging the administration’s authority to impose tariffs without congressional approval. Lastly, Taiwan’s Economy Minister Kuo Jyh-huei emphasized fair competition amid upcoming U.S. tariffs on semiconductors and chips.
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