Nasdaq ends at record, Dow falls as tariff hikes take effect
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Traders working on the floor of the New York Stock Exchange, at the opening bell on Aug 7, in New York City.
PHOTO: AFP
- Dow fell 0.5% amid concerns over equity valuations and Trump's tariffs, which analyst Patrick O'Hare says are an “overhang for the market.”
- Nasdaq rose 0.4% to a record high, despite import duties rising to as high as 41% for some US trading partners.
- Eli Lilly plunged 14.2% despite strong profits; Airbnb dropped 8% due to a weak growth outlook later in the year.
AI generated
NEW YORK - The Dow fell while the Nasdaq finished at a fresh record on Aug 7 as markets grappled with worries over lofty equity valuations in light of President Donald Trump’s aggressive trade policies.
The mixed session reflected lingering unease as new US tariff increases
“This tariff issue is still an overhang for the market as it kind of contemplates what that might mean in terms of inflation, what it might mean in terms of earnings,” said Briefing.com analyst Patrick O’Hare.
“There’s concerns about the market acting a little bit too complacent around these tariffs.”
The Dow Jones Industrial Average finished down 0.5 per cent at 43,968.64.
The broad-based S&P 500 dipped 0.1 per cent to 6,340.00, while the tech-rich Nasdaq Composite Index gained 0.4 per cent to 21,242.70, a new all-time high.
Under a previously announced White House policy, import duties rose from 10 per cent to levels between 15 per cent and 41 per cent for a list of trading partners.
Stocks have risen much of the summer as investors have been embracing a view that the US economy remains on solid footing and that the impact of higher levies has not been as bad as feared.
But some market watchers expect a pullback in light of valuations that are priced for meaningful earnings growth.
Among individual companies, Intel dropped 3.1 per cent as Mr Trump called on the chipmaker’s CEO, Mr Lip-Bu Tan, to resign
Eli Lilly plunged 14.2 per cent despite reporting a near-doubling of profits on higher revenues.
The drugmaker also released results of clinical testing of a weight loss pill that looked positive “on the surface” but indicated less impact than candidates by other companies, said Briefing.com.
Airbnb dropped 8 per cent on disappointment over the company’s outlook. The vacation rental company described demand as encouraging, but warned of weak growth figures later in the year. AFP
