U.S. Stocks Slide as Services Sector Declines and Trade Tensions Escalate

U.S. stock markets are retreating in Tuesday’s trading session, driven by a disappointing services sector report and rising concerns over escalating trade policies. This combination of weak economic data and political uncertainty has dampened investor confidence.

The downturn follows the release of the U.S. Services Purchasing Managers’ Index (PMI) from the Institute for Supply Management, which dropped to 50.1 in July. This figure fell short of market expectations of 51.5, signaling a potential slowdown in the service sector, a critical component of the American economy.

Adding to the market’s unease are recent statements from President Trump regarding trade policy. The President indicated he is considering raising tariffs on imports from India, on top of earlier increases on Canadian goods. The administration has also announced a minimum 10% tariff on all foreign imports, with a 15% tariff on goods from countries that maintain a trade surplus with the U.S. These protectionist measures have heightened global trade tensions, contributing to the cautious mood in financial markets.

As the trading day wraps up, all three major indices are down. The Dow Jones Industrial Average is slightly lower, while the S&P 500 and the Nasdaq are experiencing more significant declines, reflecting investors’ heightened risk aversion in the face of these economic and political headwinds