04:49 PM EDT, 07/23/2024 (MT Newswires) -- US benchmark equity indexes fell Tuesday as traders analyzed the latest set of corporate earnings.

The S&P 500 dropped 0.2% to 5,555.7, while the Dow Jones Industrial Average and the Nasdaq Composite slipped 0.1% each to 40,358.1 and 17,997.4, respectively. Energy saw the steepest decline among sectors, while materials led the gainers.

In company news, United Parcel Service ( UPS ) fell short of second-quarter estimates and tempered full-year revenue expectations as the package delivery company expects US customers to continue trading down between its services. UPS shares tumbled 12%, the steepest drop on the S&P 500.

Paccar ( PCAR ) was the worst performer on the Nasdaq and the second-worst on the S&P 500, down nearly 11%, after the company's second-quarter results decreased year over year.

General Motors ( GM ) said it is delaying the Buick brand's first electric vehicle and the reopening of an electric truck battery plant in the US while flagging persistent headwinds in China. The Detroit automaker's shares slid 6.4%, among the steepest falls on the S&P 500, even as it raised its full-year earnings outlook following a second-quarter beat.

Spotify Technology ( SPOT ) swung to a higher-than-expected second-quarter profit as the audio streaming company's premium subscription growth beat estimates. Its New York Stock Exchange-listed shares jumped nearly 12%.

The US two-year yield fell 2.8 basis points to 4.49%, while the 10-year rate lost one basis points to 4.25%.

In economic news, US existing home sales fell last month as prices set another record high, while inventory reached its highest level in more than four years in a sign that the market is coming into better balance, data from the National Association of Realtors showed.

Manufacturing activity in the US Mid-Atlantic region unexpectedly slid into deeper contraction territory this month as shipments and orders declined further, according to data released by the Federal Reserve Bank of Richmond.

West Texas Intermediate crude oil dropped 1.4% to $77.28 a barrel Tuesday.

Over the weekend, US President Joe Biden dropped out of the presidential race and endorsed Vice President Kamala Harris as the Democratic Party's nominee for president.

"Given President Biden's departure from the presidential race, some market participants suggest the increased uncertainty now opens the door for further Fed policy action," Stifel said in a Tuesday note to clients. "Others argue the opposite; given the increased political unease, the (Federal Open Market Committee) is likely to take less action in an attempt to appear apolitical."

Gold rose 0.5% to $2,406.60 per troy ounce, while silver added 0.2% to $29.37 per ounce.