01:36 PM EDT, 08/05/2025 (MT Newswires) -- US equity indexes fell after investors struggled to maintain focus on quarterly earnings as tariff concerns hit risk sentiment and a closely monitored services gauge showed a slowdown in activity.

The Nasdaq Composite fell 0.5% to 20,947.2, with the S&P 500 down 0.4% to 6,307.1 and the Dow Jones Industrial Average little changed at 44,172.5. All sectors except materials, consumer discretionary, and real estate declined intraday. Utilities and technology led the decliners.

Axon Enterprise ( AXON ) reported improved Q2 non-GAAP earnings and revenue Monday that beat analyst expectations. Shares jumped 16% intraday, the top gainer on the S&P 500 and the Nasdaq.

Palantir Technologies ( PLTR ) was up 7% intraday, among the top gainers on the two indices, after the company reported higher Q2 adjusted earnings and revenue, and raised its 2025 revenue outlook.

Gartner ( IT ) reported Q2 adjusted earnings and revenue that beat forecasts, but its guidance for full-year results fell short of analyst expectations. Shares sank 27% intraday, the steepest decline on the S&P 500.

Meanwhile, President Donald Trump said he will unveil tariffs on semiconductors and pharmaceuticals "within the next week or so" and that import taxes on drugs could ultimately reach 250%, according to a report from The Wall Street Journal on Tuesday.

Swiss President Karin Keller-Sutter rushed to Washington to head off a 39% tariff rate via further trade talks. Bloomberg TV reported Tuesday that Keller-Sutter flew to the US without a formal invitation from the Trump administration.

Trump's 25% punitive import duty on all goods of Indian origin is effective Thursday. The president has warned he will now raise tariffs "substantially" within 24 hours, citing India's continued purchase and resale of Russian crude oil. India responded by saying the planned move is "unjustified and unreasonable" while noting that both the US and European Union continue to trade with Russia.

US Treasury yields traded mixed, with the 10-year yield steady at 4.20% and the two-year rate climbed 3.9 basis points to 3.72%.

In economic news, the Institute for Supply Management's US services index fell to a reading of 50.1 in July from 50.8 in June, compared with expectations for an increase to a reading of 51.5 in a survey compiled by Bloomberg. The 49.9 ISM reading in May was the first sub-50 reading since June 2024 and only the 5th in the 62 months since the pandemic recovery began in June 2020, according to a note from Jefferies.

"Anecdotal comments suggest that tariffs were still a big factor limiting orders, investment and activity," Jefferies Chief US Economist Thomas Simons said in a note. "However, increased shipping traffic suggests that some levels of activity are picking up, and some respondents attributed some of the slack to weather and seasonal factors."

West Texas Intermediate crude oil futures slumped 1.7% to $65.13 a barrel.

Gold futures advanced 0.3% to $3,435.1 per ounce.

Further in economic news, Redbook US same-store sales rose 6.5% from a year earlier in the week ended Aug. 2, after a 4.9% year-over-year increase in the previous week.

The international trade deficit narrowed to $60.18 billion in June from a $71.66 billion gap in May, compared with a $61 billion gap expected in a survey compiled by Bloomberg. Imports fell more than exports, narrowing the deficit.