US markets today: Wall Street drifts near record highs as Big Tech results; Trump-Xi trade talks pull investors in both directions

Market Overview - The S&P 500 slipped 0.2% from its all-time high, while the Nasdaq composite lost 0.6%. The Dow Jones Industrial Average gained 199 points, or 0.5% [4][5] - Markets reacted positively to President Trump's comments on US-China trade, describing his meeting with President Xi Jinping as a "12 out of 10" and announcing plans to reduce tariffs on Chinese goods [4][5] - Analysts caution that despite positive rhetoric, structural trade tensions remain unresolved, with expectations for a more significant agreement not met [4][5] Technology Sector - Tech stocks showed sharp divergences post-earnings, with Meta Platforms falling 11.3% due to higher spending plans for 2026, erasing part of its 28% gain this year [4][5] - Microsoft declined 2.5% despite reporting strong quarterly earnings, as concerns about slower Azure growth and rising investment costs emerged [4][5] - Alphabet rose 5.3% after exceeding profit and revenue expectations, highlighting the volatility within the tech sector [4][5] - Collectively, Alphabet, Meta, and Microsoft account for nearly 14.5% of the S&P 500's total market value, indicating their significant influence on market movements [5] Company-Specific Movements - Chipotle Mexican Grill's stock plummeted 18% after it lowered its sales growth forecast, citing persistent macroeconomic pressures [5] - Eli Lilly's stock increased by 1.7% due to strong sales of its diabetes and obesity drugs, leading to an upward revision of its annual guidance [5] - Sherwin-Williams gained 2% after beating profit estimates despite a softer demand outlook, while Visa advanced 1.5% on stronger-than-expected results [5] Bond Market and Economic Indicators - The 10-year US Treasury yield rose to 4.09% from 4.08% following comments from Federal Reserve Chair Jerome Powell, indicating that a December rate cut is not guaranteed [5] - Traders still anticipate a rate reduction later this year, but with decreased certainty, as reflected in CME Group data [5] - European markets saw declines, with France's CAC 40 dropping 0.9% and Germany's DAX shedding 0.2% after the European Central Bank maintained steady rates [5]