US stocks ended lower on Tuesday as investors grappled with weak economic data, escalating trade tensions, and mixed corporate earnings. The S&P 500 dropped 0.50%, the Nasdaq slid 0.70%, and the Dow slipped by 62 points, following Monday’s sharp rebound from Friday’s losses tied to a disappointing jobs report. Fresh concerns about stagflation emerged after the ISM Services index indicated stagnation in July. Market sentiment was further rattled by President Trump’s threat to impose tariffs of up to 250% on pharmaceutical imports, along with potential duties on semiconductors, intensifying trade uncertainty with India, Switzerland, and China. On the earnings front, Palantir surged 7.80% after lifting its revenue outlook, while Pfizer rose 5.20% on the back of a solid quarterly performance. In contrast, Vertex Pharmaceuticals tumbled 20.60% after halting late-stage trials of its next-generation pain medication.

European stocks edged higher, building on the previous session’s rebound as investors digested a mix of earnings reports and key economic indicators. The Eurozone’s STOXX 50 rose 0.20% to 5 253, while the broader STOXX 600 ticked up 0.10% to 541. According to Trading Economics, “AB InBev gained over 2%, following a strong performance by Diageo in London after both beverage giants posted upbeat earnings. Ferrari climbed 2.50%, recovering from recent losses, while Siemens, Airbus, and BASF each rose more than 1%, extending their momentum from Monday. Infineon jumped nearly 5% on robust quarterly results, outperforming its peers, even as sector sentiment was weighed down by a nearly 1% decline in ASML after President Trump announced plans to introduce new semiconductor tariffs within a week.” On the data front, producer price inflation picked up to 0.60% y/y in June 2025, up from 0.30% in May and slightly above market forecasts of 0.50%. On a monthly basis, industrial producer prices rose 0.80%, marking the end of a three-month streak of sharp declines. 

Asian markets opened on a cautious note as weaker US services data added uncertainty around the Federal Reserve’s policy outlook. Japan’s Nikkei 225 was little changed, South Korean shares edged lower, while Australian stocks posted gains. The broader MSCI Asia Pacific Index rose 0.20%. Meanwhile, the US dollar dipped slightly, and Treasury yields stabilised after falling in the previous session. Investor focus shifted to Chinese markets after President Trump stated that a deal with Beijing was “getting very close.” In response, the Shanghai Composite edged up 0.10% to around 3 620, and the Shenzhen Component also gained 0.10% to 11 120 on Tuesday. This marked the third straight session of gains for mainland stocks, supported by rising optimism that the US and China will extend the current trade truce, which is set to expire on 12 August 2025. 

The rand weakened by about 0.30%, trading at R17.97 to the US dollar, as markets awaited the release of July’s S&P Global PMI data. At the same time, South Africa’s benchmark bond yields dipped by one basis point to 9.62%, offering modest relief to interest rate–sensitive sectors. Equity gains on the JSE were largely supported by encouraging local data—ranging from improved retail spending to stronger manufacturing sentiment—along with positive corporate updates, such as Pick n Pay’s upbeat trading statement. The combination of subdued currency movement and easing bond yields contributed to selective strength in retail, financial, and other domestically focused stocks, setting a cautiously optimistic tone for the broader market.

In commodities, gold prices rose modestly on Tuesday, extending a four-day rally driven by weaker US jobs data and growing expectations of a Federal Reserve rate cut. Geopolitical tensions further boosted safe-haven demand. Spot gold climbed to around $3 375.89 /oz, while US futures closed near $3 430.40 /oz, up about 0.10% on the day.

Meanwhile, oil prices fell approximately 1.70%, hitting a five-week low after OPEC+ announced increased production amid concerns over weakening global demand. Although tariff threats on Russian crude added some risk, they were not enough to offset the broader supply pressures.