Wall Street Indexes Hovered at Record Highs Amid Uncertainties Linked to Trade and Fed's Independence

Barry Adams
22 Jul, 2025
New York City

Stocks turned lower after closing at new record highs in the previous session as investors reviewed the fresh batch of earnings. 

The S&P 500 index edged down 0.1%, and the tech-heavy Nasdaq Composite dropped 0.6% amid rising trade tensions. 

The Trump administration is struggling to finalize trade agreements with key partners, including Canada, Mexico, Japan, the European Union, and China. 

The constantly changing U.S. trade policy has frozen new investment in the U.S. and disrupted international trade. 

Moreover, businesses are not sure of the level of tariffs on the imports when they arrive from foreign suppliers, adding another level of uncertainty.

Investor sentiment remained cautious amid ongoing efforts by the Trump administration to replace the Federal Reserve chairman and compromise the central bank's independence.

 

U.S. Stock Movers 

The Coca-Cola Company decreased 1% to $69.34, and the beverage company reported better-than-expected results in the June quarter. 

The beverage company lifted its annual comparable earnings per share estimate to an increase of 3% to $2.88, or comparable currency-neutral earnings growth of 8%.

The company's comparable earnings per share estimate includes a 5% currency headwind and includes the impact of hedged positions. 

Lockheed Martin dropped 8% to $423.42 after the aerospace and defense company's quarterly results fell short of market expectations. 

General Motors Company declined 1.8% to $52.25, and the vehicle maker reported better-than-expected quarterly results.

Revenue in the second quarter declined 1.8% to $47.1 billion from $47.9 billion, net income dropped 35.1% to $1.9 billion from $2.9 billion, and diluted earnings per share dropped 25% to $1.91 from $2.55.

The net income includes $1.1 billion in tariff-linked expenses, and the company retained its annual tariff expenses between $4.0 billion and $5.0 billion. 

The company retained its adjusted earnings per share outlook to between $8.25 and $10.0.