Stock market today: Live updates

The S&P 500 pulled back Tuesday as traders digested weaker-than-expected economic data and new tariff comments from President Donald Trump, stoking concerns about the state of the U.S. economy.

The broad market index dropped 0.4%, while the Nasdaq Composite shed 0.5%. The Dow Jones Industrial Average hovered around the flatline. The market has seen a whirlwind past few days, with the Dow falling more than 500 points Friday after the latest jobs report signaled that the labor market has been weakening for months. The blue-chip index then recovered those losses Monday, surging almost 600 points.

The indexes took a leg lower Tuesday after the ISM Services index flatlined in July, adding to stagflation concerns that were stirred up in the wake up the recent job figures. Stagflation indicates a scenario of higher inflation and lower employment. Services makes up about 70% of the U.S. economy, so a slowdown in the sector could mean trouble ahead.

Stocks were also bogged down by Trump telling CNBC that tariffs on chips, as well as pharmaceuticals, were coming soon.

“We’re going to be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States,” Trump said, adding that he’ll announce the new plan “within the next week or so.”

Palantir was a bright spot of the day, as shares jumped 7% as the defense technology company said revenue surpassed $1 billion for the first time. On the other hand, major industrial name Caterpillar reported an earnings miss, which sent shares lower earlier in the session. The stock was last marginally higher. Eaton shares, meanwhile, dipped 6% due to disappointing guidance.

“Today we’re seeing the market pull back a little bit, [but] equities have been on a nice run. We’re probably due for a period of consolidation, some backing and filling, so to speak,” said Terry Sandven, chief equity strategist at U.S. Bank Asset Management. “Clearly, valuations are elevated. This is not a cheap market.”

To be sure, Sandven added that “inflation is benign, interest rates are in the cusp of going lower and earnings are trending higher,” all of which he believes “presents a favorable backdrop for a risk-on bias.”