US margin debt, a measure showing how much investors are borrowing to buy stocks on the New York Stock Exchange, is starting to run too hot — a potentially concerning sign for the credit market, according to credit strategists at Deutsche Bank AG.

The market euphoria may continue if there are unexpected tariff reductions or a more dovish stance by the Fed than investors anticipate, the strategists said.

US stocks face near-term risk as the market is too complacent about tariffs and the related backlash, according to BNP Paribas Asset Management strategist Chi Lo.

On the trade front, Trump suggested he would not go below 15% as he sets so-called reciprocal tariff rates ahead of an Aug. 1 deadline, an indication that the floor for the increased levies was rising.

While some investors are concerned about “frothiness,” Craig Johnson at Piper Sandler says that, from a technical point of view, that this is not the case when looking “down-cap” from the heavy-weights in the S&P 500 and Nasdaq indices.

“We believe that this bull market is broadening out in terms of participation,” he said.

In a sign of how breadth remains, the NYSE advance-decline line, a popular indicator that tracks the number of securities rising minus the number falling on the exchange each day, hit fresh highs.

Corporate Highlights:

• Elon Musk warned of difficult times ahead for Tesla Inc. following one of the carmaker’s worst stretches since it first started producing electric sedans over a dozen years ago.

• Alphabet Inc. said demand for artificial intelligence products boosted quarterly sales, and now requires an extreme increase in capital spending — heightening pressure on the company to justify the cost of keeping up in the AI race.

• International Business Machines Corp. reported weaker-than-expected sales in its closely watched software segment, disappointing investors who have grown increasingly optimistic about the business.

• Microsoft Corp. said a Chinese hacking group is exploiting security vulnerabilities in the company’s SharePoint servers to deploy ransomware, following a cyberattack discovered last week that has affected hundreds of entities around the world.

• UnitedHealth Group Inc. is responding to criminal and civil requests from the US Department of Justice about its Medicare practices, the company said, confirming reports of probes that have added to mounting challenges for the largest US health insurer.

• Union Pacific Corp., North America’s largest railroad, is in advanced discussions with Norfolk Southern Corp. about a potential tie-up in what would be the industry’s largest deal ever.

• LVMH sales fell as shoppers reined in purchases of costly Louis Vuitton bags and Dior jackets, a sign the luxury titan remains stuck in its post-pandemic slump.

• American Airlines Group Inc. scaled back its earnings outlook amid deep fare discounts offered to woo reluctant travelers back on flights during a slump in consumer demand.

• Southwest Airlines Co. expects economic turmoil to erase as much as $1 billion of its annual pre-tax profit this year, prompting the US airline to offer shareholders a much-reduced outlook for 2025.

• Union Pacific Corp., North America’s largest railroad, is in advanced discussions with Norfolk Southern Corp. about a potential tie-up in what would be the industry’s largest deal ever.

• The Food and Drug Administration won’t sign off on Sarepta Therapeutics Inc. bringing its controversial gene therapy back to the market until the company can persuade US regulators that it won’t cause more deaths, according to an official familiar with the situation.

• Dow Inc. slumped after the chemical company reported its first quarterly loss in five years as trade and tariff uncertainties weighed on volumes.

• T-Mobile US Inc., the nation’s second-largest wireless provider, reported more new subscribers than analysts were expecting in the second quarter, overcoming a sluggish start to the year.

• Chipotle Mexican Grill Inc. cut its annual outlook for the second time this year, suggesting that honey chicken and burrito giveaways haven’t been enough to offset a traffic slump that the company attributed to economic anxiety.

• Blackstone Inc. reported a 25% jump in distributable earnings for the second quarter, buoyed by profits from its retail and evergreen funds.

• ServiceNow Inc. gave a strong outlook for revenue growth in the third quarter and touted customer adoption of its artificial intelligence software tools.

• Roche Holding AG is weighing direct-to-patient drug sales in the US, bypassing the middleman for its pricey medicines for multiple sclerosis, eye disease and cancer.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.2% as of 1:02 p.m. New York time

• The Nasdaq 100 rose 0.3%

• The Dow Jones Industrial Average fell 0.5%

• The MSCI World Index rose 0.3%

• Bloomberg Magnificent 7 Total Return Index fell 0.3%

• The Russell 2000 Index fell 1.1%

• Alphabet rose 0.7%

• Tesla fell 9.1%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%

• The euro was little changed at $1.1762

• The British pound fell 0.5% to $1.3511

• The Japanese yen fell 0.2% to 146.87 per dollar

Cryptocurrencies

• Bitcoin rose 0.5% to $118,582.31

• Ether rose 3.4% to $3,691.61

Bonds

• The yield on 10-year Treasuries advanced two basis points to 4.40%

• Germany’s 10-year yield advanced six basis points to 2.70%

• Britain’s 10-year yield declined one basis point to 4.62%

• The yield on 2-year Treasuries advanced four basis points to 3.92%

• The yield on 30-year Treasuries was little changed at 4.94%

Commodities

• West Texas Intermediate crude rose 0.4% to $65.48 a barrel

• Spot gold fell 0.6% to $3,366.73 an ounce

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