Wall Street slips after winning streak as investors weigh recent gains; tech stocks lead decline

Despite lingering uncertainties, UBS is advising clients to stay the course. In a note to investors, the bank acknowledged potential market turbulence but remains constructive on the outlook.

U.S. stocks eased on Tuesday, with the market taking a breather after a strong multi-week rebound. The S&P 500 dipped 0.4 percent, while the Nasdaq Composite shed 0.3 percent. The Dow Jones Industrial Average declined by 125 points, or 0.3 percent.

Technology shares were under pressure, marking the weakest performance among S&P 500 sectors with a loss of nearly 0.9 percent. Nvidia slipped 2 percent, and other big names like Meta Platforms, Apple, and Microsoft also closed in the red.

The pullback comes on the heels of a six-day winning run for the S&P 500—the longest since earlier this month—extending a sharp recovery that began five weeks ago. Since hitting a low in April, the benchmark index has surged more than 20 percent, helped by easing trade-related worries after an initial sell-off triggered by President Donald Trump’s tariff proposal. The index now sits within 3 percent of its all-time high.

Elsewhere, Home Depot shares inched up after the company reaffirmed its full-year guidance, projecting a 2.8 percent increase in annual sales. CFO Richard McPhail noted that the retailer has no plans to raise prices in response to higher tariffs.

Despite lingering uncertainties, UBS is advising clients to stay the course. In a note to investors, the bank acknowledged potential market turbulence but remains constructive on the outlook.

"We anticipate volatility in the near term as several risk factors play out," UBS wrote. "Still, we expect the S&P 500 to grind higher over the next year and the 10-year Treasury yield to drift lower."

To navigate the expected choppiness, UBS suggests a diversified approach—including exposure to bonds, gold, and hedge funds—to complement equity holdings.

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