04:36 PM EDT, 08/05/2025 (MT Newswires) -- US benchmark equity indexes closed lower on Tuesday, amid July slowdown in US services sector and a narrowing trade deficit.

The Nasdaq was down 0.7% to 20,916.55 while the S&P 500 decreased 0.5% to 6,299.19. The Dow Jones Industrial Average fell 0.1% to 44,111.74. Among sectors, materials led the gainers while utilities rallied the decliners.

US Treasury yields were higher, with the 10-year rate increasing 0.5 basis points to 4.20% and the two-year rate rising 3.9 basis points to 3.72%.

September West Texas Intermediate crude oil fell 1.8% to $65.09 a barrel on Tuesday.

In economic news, growth in the US services sector almost stalled in July amid a slowdown in business activity and new orders, a survey by the Institute for Supply Management showed.

"The softer trend in ISM services, coupled with an even worse performance in its manufacturing counterpart, are indicative of slowing US economic activity - a theme that we anticipate will become more entrenched in the third quarter," TD Economics said in a report.

Last week, ISM data showed that the US manufacturing sector activity contracted at a faster rate month on month in July.

The US trade deficit in June hit its lowest level since September 2023 as imports dropped, while the goods trade gap with China shrank to its smallest in more than 21 years, government data showed.

In company news, Axon Enterprise ( AXON ) was the top gainer on the S&P 500, up 16%. The company late Monday raised its full-year revenue guidance following a second-quarter beat.

Leidos Holdings ( LDOS ) shares were up 7.5%, the second top performer on the S&P 500. The company posted higher fiscal Q2 adjusted earnings and revenue and raised its fiscal 2025 guidance.

Gartner ( IT ) shares sank 28%, the worst S&P 500 performer. The company reported Q2 adjusted earnings and revenue that beat forecasts, but its guidance for full-year results fell short of analyst expectations.

Gold increased 0.2% to $3,434.20 per troy ounce, and silver was up 1.3% to $37.82 per troy ounce.