US stocks sink again as more companies detail damage they're taking because of Trump's trade war

U.S. stocks closed lower Tuesday as quarterly results show more companies are scrubbing their forecasts for upcoming profits because of uncertainty created by President Donald Trump’s tariffs.

The S&P 500 fell 0.8%, its second drop after breaking a nine-day winning streak, its longest such run in more than 20 years. The Dow Jones Industrial Average dropped 0.9%, and the Nasdaq composite finished 0.9% lower.

Palantir Technologies was one of the heaviest weights on the market as it sank 12%. The company, which offers an AI platform for customers, dropped even though it reported a profit for the latest quarter that met analysts’ expectations and raised its forecast for revenue over the full year.

AI-related companies have been finding it more difficult recently to convince investors to support their stocks after they’ve already shot so high. Palantir’s stock’s price remains near $110, when it was sitting at only $20 less than a year ago.

The return to Earth for AI stocks is happening as Trump’s tariffs change the economic landscape for other companies.

Clorox CEO Linda Rendle said her company saw changes in shopping behavior during the first three months of the year, for example, that led to lower revenue. The company reported both weaker revenue and profit for the latest quarter than analysts expected. Clorox expects the slowdowns to continue in the current quarter, and its stock fell 2.4%.