US stocks dip as tariffs squeeze company earnings
US stocks dipped on Tuesday, with the S&P 500 down 0.49% and the Dow off 0.14%, as investors worried about how new tariffs are squeezing company earnings and slowing economic momentum—even though most companies are still beating profit forecasts.
Tariff troubles: The real cost of trade wars
Tariffs aren't just headlines—they're making things pricier for businesses and consumers.
Yum Brands's shares dropped over 5% after missing earnings due to steep duties, while Caterpillar expects $1.5 billion in extra tariff costs by 2025.
Even Marriott is seeing travel demand cool off, adding to the mixed signals about where the economy's headed.
Service sector growth stalls due to rising import taxes
While big companies are mostly posting solid results, rising import taxes are pushing up costs across industries.
The US trade deficit narrowed in June because Americans bought fewer imported goods (especially from China), but July saw service sector growth stall as tariffs kept piling on expenses.
New duties on things like medicines and semiconductors could make waves next.
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