Market Fluctuations amid US Tariff Concerns and Investor Euphoria

US stocks drifted on Tuesday as momentum slowed following consecutive record highs, with the S&P 500 losing 0.1% in morning trading. Tesla, weighing down the index by 4.1%, faced headwinds from CEO Elon Musk's soured relationship with President Trump over potential government spending scrutinies.

On a positive note, casino stocks surged after better-than-expected growth in Macau's gaming revenue as Wynn Resorts and Las Vegas Sands posted significant gains. However, the looming threat of Trump's tariffs and Congressional measures on tax rates pose challenges that could impact the economy and fuel inflation concerns.

The bond market saw rising Treasury yields with mixed US economic data, as Fed Chair Jerome Powell opts for caution pending further evidence of tariff impacts. European and some Asian stock indexes also experienced modest declines.

(With inputs from agencies.)