Wall Street Slips on Mixed Trade Headlines; Fed Decision in Focus

The Dow Jones Industrial Average, made up of 30 blue-chip stocks, dropped 0.95% to 40,829.00 points. The S&P 500, which tracks the largest publicly traded companies, lost 0.77% to 5,606.91, while the tech-heavy Nasdaq Composite declined 0.87% to 17,689.66. Investors reacted to what were seen as contradictory trade comments, particularly after President Trump announced on Monday plans to impose tariffs on pharmaceutical imports. The remarks weighed heavily on healthcare stocks, with Eli Lilly tumbling 5.64%, Merck losing 4.59%, and Pfizer falling 4.15%. While trade tensions remained front and center, investors also looked ahead to tomorrow’s Federal Reserve monetary policy announcement. No changes are expected to the federal funds rate, but any reference to the economic impact of tariffs will be closely watched. Corporate earnings also continued to influence trading. Ford shares rose more than 2% despite the automaker slashing its full-year outlook, citing uncertainty over the tariff landscape. Palantir Technologies plunged 12% after the AI-focused data firm posted quarterly results that missed market expectations—even as it raised its full-year revenue forecast. Tesla fell over 2% as the electric vehicle maker reported a steep drop in April sales in Germany, while new car sales in the UK plummeted 62% year-over-year, hitting their lowest level in more than two years. DoorDash tumbled more than 8% after its first-quarter revenue came in below estimates. The company also confirmed it had made a formal offer to acquire its UK-based competitor, Deliveroo.