U.S. Stocks Retreat Amid Tariff Escalation and Fed Uncertainty

Major U.S. stock indices pulled back from record levels as markets grappled with renewed trade tensions and Federal Reserve policy uncertainty. The Dow Jones Industrial Average fell 238 points (0.54%), while the S&P 500 and Nasdaq Composite dipped 0.14% and 0.09% respectively.

Netflix shares tumbled 5% despite beating earnings estimates, dragged down by disappointing guidance. American Express followed suit with a 2.5% decline even after reporting strong results. Market attention remained divided between corporate earnings and geopolitical developments.

Trade tensions escalated as the TRUMP administration raised proposed EU tariffs from 15% to 20%, rejecting earlier compromise proposals. The President simultaneously maintained pressure on Federal Reserve Chair Jerome Powell, criticizing interest rate policy as overly restrictive during ongoing trade disputes.