Quick overview

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U.S. stocks closed lower on Tuesday, snapping the S&P 500’s six-day winning streak as rising Treasury yields weighed on markets and drew investor attention to the growing concerns around U.S. sovereign debt.

The Dow Jones Industrial Average slipped 0.27% to 42,677.24, while the S&P 500 fell 0.39% to 5,940.46. The Nasdaq Composite, dominated by tech stocks, declined 0.38% to 19,142.72.

The selloff followed a jump in Treasury yields, particularly the 10-year note, which put pressure on mega-cap tech names. The bond market is increasingly in focus as political and fiscal tensions mount in Washington.

Trump Pushes for Tax Cuts Amid Debt Concerns

Former President Donald Trump visited Capitol Hill to rally support for a proposed tax cut bill that could add $3 trillion to $5 trillion to the U.S. federal debt, which currently stands at $36.2 trillion. His visit came just days after Moody’s became the last of the three major credit rating agencies to downgrade the U.S. credit outlook, citing unsustainable debt growth.

That downgrade tempered Monday’s rally and continued to cloud investor sentiment into Tuesday’s session.

Fed Officials and Tariff Warnings

Federal Reserve officials also made appearances throughout the day. Atlanta Fed President Raphael Bostic warned that tariffs could soon impact prices and employment, adding further uncertainty to the market outlook.

Treasury Yields Hit Tech Giants

Rising bond yields hit tech stocks the hardest, dragging down the broader market. Among the “Magnificent Seven,” Nvidia fell 0.88%, Meta Platforms dropped 0.52%, Amazon declined 1%, Apple lost 0.92%, and Microsoft slipped 0.15%, all contributing to the S&P 500’s losses.

Big Tech Posts Best Quarter in Four Years

Despite the day’s dip, Big Tech names have delivered their strongest earnings quarter in four years:

• Alphabet (Google) posted 48.7% EPS growth, beating expectations by nearly 39%.
• Amazon saw a 62.2% jump in earnings, exceeding its EPS forecast by over 16%.
• Meta Platforms reported 36.5% EPS growth, while Microsoft grew 17.7%.
• Apple had a more modest 7.8% increase, but still beat its target.
• The outlier was Tesla, whose earnings per share dropped 40% year-over-year, missing estimates by more than 34%.

Investors now await earnings results from Nvidia, expected later this week, which could further influence market direction.