S&P 500 retreats from record level as market assesses business landscape

US stocks fell at the close of a volatile Tuesday session, following weak outcomes from the latest round of trade talks between the US and China, and as markets await the Federal Reserve’s decision on interest rates.

At the close of Tuesday's session, the Dow Jones Industrial Average fell by 0.46%, or 204 points, to 44,632 points.

The broader S&P 500 Index declined 0.30%, or 18 points, to 6,370 points, after reaching a new record high of 6,409 points earlier in the session.

The Nasdaq Composite dropped 0.38%, or 80 points, to 21,098 points, after surpassing the 21,300 mark for the first time ever.

The Stoxx Europe 600 Index rose 0.35% to 550 points, supported by positive performance across most major stock exchanges.

Germany’s DAX climbed 1% to 24,217 points, France’s CAC gained 0.70% to 7,857 points, and the UK’s FTSE advanced 0.60% to 9,136 points.

Japan’s Nikkei 225 Index declined by 0.80% to 40,674 points, while the broader Topix Index fell by 0.75% to 2,908 points.

Brent crude futures for September delivery rose by 3.53%, or $2.47, to settle at $72.51 per barrel.

US WTI crude futures for September delivery gained 3.75%, or $2.50, to $69.21 per barrel.

August futures for the yellow metal edged up 0.42%, or $14, to close at $3,324 per ounce.

The US and China concluded a new round of trade negotiations that took place over two days in Stockholm. The talks resulted in an agreement to extend the tariff truce beyond Aug. 12. However, US Treasury Secretary Scott Bessent stated that Trump has the last say.

Investors are now focused on the Federal Reserve’s interest rate decision, expected tomorrow, with forecasts pointing to a hold within the range of 4.25% to 4.50%.