Stockholm, Sweden — The latest round of trade negotiations between the United States and China ended Tuesday without a much-anticipated agreement to extend the tariff truce. The discussions, held in the Swedish capital, concluded without breakthrough results, raising concerns about potential economic repercussions.

U.S. Treasury Secretary Scott Bessent stated that any new measures or extensions would require approval from President Donald Trump. Bessent characterized the meetings as productive, although he acknowledged that if no extension is reached by the August 12 deadline, tariffs on Chinese imports would revert to their prior levels from April.

Market reactions were immediate, with investor sentiment dampened by the lack of progress in trade discussions. The S&P 500 and Nasdaq Composite both closed lower, retreating from the record highs achieved at their opening. Analysts noted that mixed earnings reports from corporations added to the market’s unease.

Among the notable earnings reports, Boeing showed signs of improvement by narrowing its quarterly losses. However, the outlook for other companies appeared more grim. Starbucks logged its sixth consecutive quarter of same-store sales declines, even as CEO Brian Niccol expressed optimism about a potential turnaround.

In stark contrast, shipping giant UPS refrained from offering guidance on revenue and operating profits, citing the current economic uncertainty as a significant concern. Analysts often view UPS as a barometer of consumer activity, making its cautious approach noteworthy.

Attention is now shifting to the Federal Reserve, which is set to conclude its policy meeting on Wednesday. This meeting is expected to provide insight into the central bank’s stance on current economic conditions, alongside important data releases including gross domestic product readings and private payroll statistics.

As corporate and economic uncertainties loom, many investors are seeking clarity. The next 90 days will bring further trade discussions, with hopes that the U.S. and China can come to a more favorable arrangement without economic escalation.

In a related development, South Korean AI chip startup Rebellions is making headlines ahead of its planned IPO. The firm has secured backing from tech giant Samsung and aims to raise up to $200 million in funding, further emphasizing the global competition in artificial intelligence technology.

These developments encapsulate an unpredictable landscape for both international trade and corporate earnings, as investors and analysts brace for the potential impacts of both domestic and foreign economic shifts.