US stocks traded lower midway through trading on Tuesday, with the Nasdaq Composite falling around 500 points. The Dow traded down 0.04% to 51,694.44, while the NASDAQ fell 1.91% to 25,665.85. The S&P 500 also dropped 1.27% to 7,377.89. The decline came amid a drop in commodity prices and mixed economic data.

Market Performance

Consumer staples shares jumped by 1.4% on Tuesday, while information technology stocks fell by 2.3%. The S&P Global manufacturing PMI rose to 55.7 in June from 55.1 in May, topping market estimates of 54.8 and recording its highest reading since May 2022. The S&P Global US services PMI climbed to 51.3 in June from 50.7 in the previous month, higher than market estimates of 51. The S&P Global composite PMI surged to 52.2 in June from 51.5 in the prior month, recording the sharpest pace of growth since January.

Commodities

In commodity news, oil traded down 1.4% to $72.83, while gold traded down 1.2% at $4,151.50. Silver traded down 5% to $62.310 on Tuesday, while copper fell 3.1% to $6.1655.

Global Markets

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.6%, while Spain’s IBEX 35 Index fell 0.4%. London’s FTSE 100 rose 0.1%, Germany’s DAX dipped 0.8%, while France’s CAC 40 fell 0.4%. Asian markets closed lower on Tuesday, with Japan’s Nikkei 225 dipping 3.55%, Hong Kong’s Hang Seng Index falling 1.82%, China’s Shanghai Composite declining 1.37% and India’s BSE Sensex falling 1.16%.

Notable Stock Movements

Atlantic International Corp (NASDAQ: ATLN) shares shot up 141% to $1.05 after the company announced that Seven Stars, a company within its Circle8 Group platform, secured an approximately $52 million four-year framework agreement by the Dutch Vehicle Authority. Shares of Backblaze Inc (NASDAQ: BLZE) surged 30% to $10.52 after announcing a five-year, $335 million multi-exabyte data storage agreement with CoreWeave Inc (NASDAQ: CRWV). Boundless Bio Inc (NASDAQ: BOLD) shares gained 70% to $2.38 after signing an all-stock merger agreement with Serapha Bio.

Nexentis Technologies Inc (NASDAQ: NXTS) shares dropped 51% to $6.34 after surging 155.91% during Monday’s regular trading session. Primoris Services Corp (NYSE: PRIM) fell 28% to $78.36 after announcing the departure of COO Jeremy Kinch and cutting its FY26 guidance. Wheeler Real Estate Investment Trust Inc (NASDAQ: WHLR) dropped 36% to $2.45 after filing a prospectus for offering 100.09 million common shares.

Goldman Sachs Group Inc. has released a report warning that accelerating global electric vehicle (EV) adoption could significantly offset oil demand by late next year. The investment bank outlined that under a 'Persistent Acceleration' scenario, where growth follows the February to May trajectory, oil demand could be reduced by 320,000 barrels per day by December next year. This projection highlights the increasing pressure EV sales are placing on traditional fossil fuel consumption markets.

The report detailed that EV car sales in the market increased by 3.4 percentage points in May, bringing EVs to account for 26.1% of total sales in the global market. In contrast, if there is no growth in EV sales, the study outlined that demand for oil in the global market could still take a hit of around 130,000 barrels per day by December next year. The data suggests a structural shift in transportation energy preferences regardless of the pace of EV adoption.

Impact of Two- and Three-Wheelers

The analysis also noted the significant contribution of two- and three-wheeler EVs, which accounted for a majority of sales in markets like India and Vietnam. According to the note, these vehicles could offset about 'one-third to one-half' of the fuel that four-wheeler EVs can. This segment is particularly crucial in developing economies where smaller vehicles dominate the transportation landscape.

Regional Sales Performance

EV sales in the U.S. reached a record high in May, with preliminary numbers showing 85,000 units sold. The average EV transaction price was $54,532, a 4% YoY decline from May 2025. This growth occurred despite President Donald Trump ending the $7,500 Federal EV Credit. Tesla Inc. CEO Elon Musk stated that Tesla's sales increased after the end of the Federal EV credit, countering allegations that his businesses benefited from government subsidies.

Oil Demand Outlook

According to a report by the Energy Information Administration (EIA) published June 9, the agency expects global oil demand to decrease by an average of 1.1 million barrels per day in 2026. However, the EIA anticipates a rebound sometime next year by 2.5 million barrels per day in 2027, reaching 105.3 million barrels of oil every day. Investor Ross Gerber of Gerber Kawasaki suggested that spikes in gas prices, potentially driven by geopolitical tensions, would lead people to choose EVs over gas vehicles, benefiting companies like Tesla.