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Indexes: Dow down 0.13%, S&P 500 up 0.02%, Nasdaq up 0.03%

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Tesla stock up after steep losses in previous session

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Minutes of Fed June rate meeting due on Wednesday

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Solar stocks fall as Trump seeks to end tax credits

(Updates with early afternoon prices)

By Pranav Kashyap and Nikhil Sharma

July 8 (Reuters) - The S&P 500 and the Nasdaq struggled

for direction on Tuesday, as anxiety over President Donald

Trump's latest tariff salvo overshadowed investor hopes that

fresh talks with U.S. trading partners might avert a full-blown

global trade war.

At 11:49 a.m. the Dow Jones Industrial Average fell

58.27 points, or 0.13%, to 44,348.09, the S&P 500 gained

1.04 points, or 0.02%, to 6,231.02 and the Nasdaq Composite

gained 5.06 points, or 0.03%, to 20,417.57.

Trump warned on Monday that sweeping new U.S. tariffs would

hit countries from Japan and South Korea to smaller trading

partners starting Aug. 1-though he hinted at possible reprieves

if fresh proposals emerged.

The threat sent all major indexes sharply lower at Monday's

close, but they pared some losses earlier in the session on

expectations that the economies would possibly work out

favorable trade terms through negotiations before Aug. 1.

Japan's top trade negotiator, Ryosei Akazawa, held a

40-minute phone call with U.S. Commerce Secretary Howard Lutnick

on Tuesday, where the two sides agreed to "actively" continue

negotiations.

While investors stayed on the sidelines, the Russell 2000

small-cap index managed to eke out gains of nearly 1%.

The energy index jumped 2.2%, while Utilities

, often traded as bond-proxies, dropped 1.1%.

In mega-cap stocks, shares of Tesla gained 2.5%

after the stock recorded its steepest single-day fall in nearly

a month on Monday.

"The pick up in volatility is a reminder of the degree of

uncertainty surrounding trade policy," said Jordan Rizzuto,

chief investment officer of GammaRoad Capital Partners.

Rizzuto also noted that the real risk was not knowing when

these tariffs will hit consumers.

The subdued mood stands in sharp contrast to the market

turmoil that was unleashed by the "Liberation Day" tariff

announcements three months ago, which pushed the Nasdaq into

bear territory and dragged the Dow and the S&P 500 into

correction.

Since then, Wall Street has rebounded, with the Nasdaq and

the S&P 500 powering to record highs last week, buoyed by a

resilient labor market that has helped ease fears of a looming

recession.

BofA Global Research and Goldman Sachs raised their year-end

targets for the S&P 500 index, broadly driven by reduced

policy uncertainty, resilient corporate earnings and potential

interest rate cuts.

Minutes of the Fed's June rate-setting meeting are scheduled

for release on Wednesday, which will offer investors more

clarity on when the central bank might resume its policy easing

cycle.

Shares of solar stocks fell after Trump on Monday directed

federal agencies to strengthen provisions in the One Big

Beautiful Bill Act that repeal or modify tax credits for solar

and wind energy projects.

SunRun ( RUN ) dropped 12%, Enphase Energy ( ENPH ) lost

3.2% and SolarEdge Technologies ( SEDG ) declined 3.8%.

Advancing issues outnumbered decliners by a 1.71-to-1 ratio

on the NYSE, and by a 1.81-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and three new lows,

while the Nasdaq Composite recorded 67 new highs and 30 new

lows.