12:49 PM EDT, 08/05/2025 (MT Newswires) -- US equity indexes fell as trade tariff jitters undermined risk sentiment, while a services gauge showed a slowdown in activity.

The Nasdaq Composite fell 0.6% to 20,929.1, with the S&P 500 down 0.4% to 6,302.4 and the Dow Jones Industrial Average 0.1% lower at 44,118.6. All sectors except materials, consumer discretionary, and real estate declined intraday. The utilities sector was in the steepest decline across the spectrum.

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.

Meanwhile, the 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 is flying to the US without a formal invitation from the Trump administration.

Trump, who has imposed a 25% punitive import duty on all Indian-origin goods, effective Aug. 7, has warned that he will now raise tariffs "substantially" within 24 hours, citing India's continued purchase and resale of Russian crude oil. New Delhi said 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 3.5 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.

West Texas Intermediate crude oil futures slumped 1.7% to $65.16 a barrel.