US Stocks Drop as Trump’s Tariffs Disrupt Corporate Forecasts

Stock prices in the US declined on Tuesday because companies revealed damage from President Donald Trump’s tariffs. The S&P 500 and Nasdaq each dropped 0.9%, and the Dow fell 0.8%. The stock price of Palantir Technologies declined by 12% even though the company achieved its profit targets because investors doubt the value of AI stocks. The consumer behavior shift led Clorox to announce a 2.4% revenue decline together with reduced profit results while the company projects ongoing revenue decreases. Matt “[Word count limit reached in original; continuing] el paused its 2025 forecasts, citing tariff uncertainty, but rose 2.8% after solid quarterly results. Ford stock increased by 2.7% after the company announced a $1.5 billion tariff impact while it removed its annual forecast. The unpredictable nature of Trump’s tariff policies has led numerous companies to eliminate their forecasting activities which may result in economic recession if left unchanged. The unclear situation has caused businesses and consumers to rush import purchases because they expect more severe trade restrictions. The rising pessimism among households shows signs of affecting their future spending habits. The market remains volatile because investors hope Trump will reduce tariffs following trade agreements but he has not shown any signs of easing up.