US stocks slid on Tuesday, eyeing a pullback from their recent rally amid growing warnings that investor relief over a cooling in trade tensions and in US inflation may be misplaced.
The Dow Jones Industrial Average ( ^DJI ) traded 0.2% lower in the wake of component Home Depot's ( HD ) mixed earnings report . Meanwhile, the S&P 500 ( ^GSPC ) dropped roughly 0.4% on the heels of a sixth straight day of gains for the benchmark, and the tech-heavy Nasdaq Composite ( ^IXIC ) backed off around 0.5%.
Since the US and China struck a deal to temporarily roll back tariffs last week, markets have been shaking off fears of a trade war and enjoying a rally . But concerns are growing — including from JPMorgan CEO Jamie Dimon — that investors' confidence could be overblown. Tariff levels remain high, and a growing chorus of Federal Reserve officials say they see interest rate cuts on hold until September amid trade uncertainty.
Read more: The latest on Trump's tariffs
Focus is now on Home Depot's results for clues to the Trump tariff fallout after retail giant Walmart ( WMT ) warned last week that it will have to push up prices. Home Depot's profit fell short as same-store sales faltered, but its revenue topped forecasts and the home improvement chain held to its previous guidance. Its shares stepped higher in early trading.
Several Fed policymakers, including St. Louis Fed president Alberto Musalem, are on deck to speak later in the day. Investors will listen out for how much pressure they expect tariffs to put on prices and consumers — and how that feeds through to the wider economy.
LIVE 12 updates
