Market Downturn as Inflation and Bank Earnings Disappoint

Major US stock markets faced a downturn on Tuesday, with the Dow Jones Industrial Average closing significantly lower. The decline was attributed to fresh inflation data and underwhelming earnings reports from major banks.

Inflation Data Sparks Concern

The consumer price index for June showed a 0.3% increase, pushing the annual inflation rate to 2.7%. This development has raised concerns among investors, especially with the looming threat of additional tariffs on goods from the European Union and Mexico by President Donald Trump.

Bank Earnings Add to Market Pressure

Financial stocks were under pressure, with Wells Fargo experiencing a notable slump of over 5% after revising its net interest income guidance downward. This contributed to the Dow's 0.98% drop, equivalent to a 436-point decrease.

Mixed Performances Across Indices

While the Nasdaq 100 saw a modest increase of 0.13%, and The Trade Desk surged by 6.52%, the S&P 500 wasn't spared, dropping 0.40%. State Street emerged as the worst performer on the S&P, with a 6.82% decline.

Currency Market Movements

On the currency front, the euro weakened against the US dollar, trading 0.55% lower at $1.16002 by late afternoon ET.