Wall Street has a supply edge

On the US stock markets, supply prevailed throughout Tuesday's session. Investor sentiment was not improved by the declarations of Treasury Secretary Scott Bessent at a House of Representatives committee about the possibility of announcing a trade agreement with a large US partner as early as this week. The reason was Donald Trump's statements during a meeting with Canadian Prime Minister Mark Carney, in which the US president signaled that he did not feel pressure to quickly reach agreements. He said that he would assess which ones to accept over the next two weeks.

Trump’s announcement on Monday that he would announce tariffs on pharmaceutical products in the coming weeks caused the healthcare segment to decline the most during Tuesday’s session. In the S&P 500, vaccine maker Moderna (-12.25%) was the biggest loser, while the biggest losers in the index included Vertex Pharmaceuticals (-10%), Regeneron Pharmaceuticals (-7.5%) and Eli Lilly & Co. (-5.7%). In the Dow Jones Industrial Average, Amgen (-3.4%) and Merck & Co. (-4.6%) were the biggest losers.

Among the quarterly reports published before Tuesday's session, investors paid a lot of attention to Palantir Technologies (-12%). The company called the "Tesla of the software industry" disappointed with a lower than expected sales forecast, although some analysts emphasized that expectations were excessive. For almost the entire day, the fastest-growing company in the S&P 500 was Constellation Energy (10.3%). The largest operator of nuclear power plants in the US and the largest producer of energy not derived from coal showed higher than expected quarterly revenue, mainly thanks to demand resulting from the expansion of data centers supporting artificial intelligence.

The two-day FOMC meeting began on Tuesday. US bond yields fell. However, the market expects rate cuts in July at the earliest. It is important what Fed Chairman Jerome Powell says after tomorrow's decision.

Nearly three-quarters of S&P 500 companies ended the session lower. Supply was dominant in 9 of the 11 major segments of the index. The biggest declines were in healthcare (-2.8%), industrials and consumer discretionary (-0.85%). Demand was dominant only in energy (0.1%) and utilities (1.2%).

In the Dow Jones Industrial Average, 23 of 30 companies fell. The biggest declines were in the healthcare segment: insurer UnitedHealth Group (-2.6%), drugmakers Amgen (-3.4%) and Merck & Co. (-4.6%). The biggest gains were seen in Verizon Communications (1.4%), McDonald's (0.3%) and Procter & Gamble (0.2%).

The prices of two-thirds of almost 3.3 thousand companies from the Nasdaq Composite fell. Shares of all the technological blue chips from the "magnificent seven", whose index lost 0.9 percent, fell the most. The biggest declines in this group were recorded by Meta Platforms (-2.0 percent) and Tesla (-1.75 percent), which recorded further large declines in car sales on the largest European markets.