US stocks gains faded in afternoon trading as sentiment was weighed down by political pressure on pharmaceutical pricing and soft consumer spending data, despite strong corporate earnings. The S&P 500 and Nasdaq pulled back from record highs hit earlier in the session, down 0.3% and 0.1%, respectively, while the Dow lost over 150 points. President Trump’s extension of a 25% tariff on Mexican imports, along with looming deadlines for broader trade actions, added to market jitters. Meanwhile, the Fed’s preferred inflation gauge, the core PCE, rose 0.3% in June and 2.8% yoy, reinforcing uncertainty over a potential September rate cut. On the corporate front, Meta surged as much as 12% after beating earnings expectations and offering an upbeat sales outlook, while Microsoft briefly gained 8%, lifting its market cap above $4 trillion on the strength of Azure’s performance. Investors now await Apple and Amazon earnings and Friday’s jobs report for further insight into the economic outlook.