S&P 500 down 0.04%, Nasdaq down 0.16%, Dow up 0.43%
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Tesla slips as Denmark, Sweden sales drop; Trump-Musk feud
(Updates with market open prices)
By Sruthi Shankar and Nikhil Sharma
July 1 (Reuters) – The S&P 500 and Nasdaq indexes inched down on Tuesday as Federal Reserve Chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on U.S. President Donald Trump’s tax-cut and spending bill.
The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December.
The day’s moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment.
Powell reiterated the U.S. central bank plans to “wait and learn more” about the impact of tariffs on inflation before lowering interest rates, again setting aside Trump’s demands for immediate and deep rate cuts.
The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell’s replacement for when he leaves the job next May.
The fate of Trump’s “One Big Beautiful Bill” was also in focus as U.S. senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $3.3 trillion to the nation’s debt pile.
The Republican majority’s struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income Americans.
Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon.
“This version that we hear about is not necessarily the one that’s going to pass. So you know that’s still something that weighs on investors’ minds,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Tesla’s shares fell 4.5% after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk’s companies have received.
Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June.
At 10:17 a.m. ET, the Dow Jones Industrial Average rose 189.54 points, or 0.43%, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04%, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16%, to 20,336.87.
The S&P 500 and porno the Nasdaq’s rise to record highs marked a stunning recovery in sentiment that was hammered by Trump’s chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going.
Data showed U.S. job openings increased unexpectedly in May, suggesting labor market resilience despite trade and economic uncertainties.
Market focus now shifts to Thursday’s nonfarm payrolls report, which could recaliberate bets for a rate cut as soon as July.
Money markets are pricing in a 21.2% likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data.
AMC Entertainment Holdings dropped 6.5% after the theater chain operator said it would cut its debt by converting at least $143 million in exchangeable bonds into shares.
Shares of U.S.-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8%, Las Vegas Sands was up 6.5% and MGM Resorts International added 4.5%.
Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq.
The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows. (Reporting by Sruthi Shankar in Bengaluru; Editing by Devika Syamnath)
