NEW YORK (AP) \u2014 Wall Street pulled back from its records on Tuesday following a mixed start to the latest profit reporting season for big U.S. companies.<\/p>\n
The S&P 500 fell 0.2% from its all-time high<\/a> set the day before. The Dow Jones Industrial Average dropped 398 points, or 0.8%, from its own record, while the Nasdaq composite slipped 0.1%.<\/p>\n U.S. companies are under pressure to deliver strong growth in profits to justify the runs to records their stock prices have made. Analysts expect companies in the S&P 500 index will deliver earnings per share for the final three months of 2025 that are 8.3% higher than a year earlier, according to FactSet.<\/p>\n JPMorgan Chase<\/a> helped kick off the latest reporting season by delivering weaker profit and revenue than analysts expected. Its stock fell 4.2% and was one of the heaviest weights on the market.<\/p>\n The shortfall may have been because some analysts hadn\u2019t updated their estimates to account for an earnings hit resulting from the bank\u2019s purchase of the Apple Card credit card portfolio<\/a>. CEO Jamie Dimon sounded relatively optimistic about the U.S. economy, saying \u201cconsumers continue to spend, and businesses generally remain healthy.\u201d<\/p>\n Delta Air Lines lost 2.4% despite reporting a stronger profit than analysts expected. Its revenue came up short of Wall Street\u2019s expectations, as did the midpoint of its forecasted range for profit in 2026.<\/p>\n Chipotle Mexican Grill sank 2.3% after saying it\u2019s looking for a new chief marketing officer, a move that surprised analysts.<\/p>\n On the winning side of Wall Street were several health care companies that raised their financial forecasts at an industry conference with analysts.<\/p>\n Moderna jumped 17.1% for the biggest gain in the S&P 500 after saying it expects to report revenue for 2025 that\u2019s above the midpoint of the range it had forecast in November. It also offered updates on several products, including a seasonal flu vaccine that could see potential approvals beginning later this year.<\/p>\n Revvity rose 6% after the life sciences company said it expects to report profit for 2025 that\u2019s above the top end of the forecasted range it had earlier given. Its forecast for revenue in the fourth quarter also topped analysts\u2019 expectations.<\/p>\n Cardinal Health added 2.8% after saying it expects to earn at least $10 in adjusted earnings per share in its fiscal 2026 year, up from its prior forecasted range of $9.65 to $9.85.<\/p>\n All told, the S&P 500 fell 13.53 points to 6,963.74. The Dow Jones Industrial Average dropped 398.21 to 49,191.99, and the Nasdaq composite sank 24.03 to 23,709.87.<\/p>\n In the bond market, Treasury yields eased after a highly anticipated update on inflation<\/a> came in close to economists\u2019 expectations. The data strengthened expectations that the Federal Reserve <\/a> will cut its main interest rate at least twice in 2026 to shore up the job market.<\/p>\n Lower interest rates could make borrowing cheaper for U.S. households and boost prices for investments, but they could also worsen inflation at the same time. Tuesday\u2019s report showed that U.S. consumers paid prices last month for gasoline, food and other costs of living that were 2.7% higher overall than a year earlier. That\u2019s a touch worse than economists expected and above the Fed\u2019s 2% target for inflation.<\/p>\n But, in a more encouraging sign, an important underlying trend of inflation wasn\u2019t as bad last month as economists expected. That could give the Fed more leeway to lower interest rates later.<\/p>\n \u201cWe\u2019ve seen this movie before\u2014inflation isn\u2019t reheating, but it remains above target,\u201d according to Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.<\/p>\n The data helped the 10-year Treasury ease to 4.17% from 4.19% late Monday. The two-year Treasury yield, which more closely tracks expectations for what the Fed will do, inched down to 3.52% from 3.54%.<\/p>\n