Reported by Tahir Ishaq Shehu
Tuesday July 1 2025 — US markets were mixed on Tuesday as Wall Street reacted to major political and economic developments.
S&P 500 (GSPC) hovered just below the flatline after closing above 6200 for the first time on Monday
Nasdaq Composite (IXIC) fell around 0.8 percent weighed down by a drop in Tesla shares
Dow Jones Industrial Average (DJI) gained more than 1 percent
Senate Passes Trump Tax and Spending Bill
In a dramatic 50 to 50 Senate vote Vice President JD Vance cast the tie breaking vote to pass President Trump’s sweeping tax and budget legislation. The bill now returns to the House for final approval as lawmakers aim to meet Trump’s July 4 deadline. Notably the bill includes a bipartisan amendment overturning the federal ban on state level AI regulation marking a major blow to tech giants that have largely supported Trump.
Tesla Sinks as Musk Trump Feud Resurfaces
Tesla (TSLA) shares slumped as tensions reignited between CEO Elon Musk and President Trump. The renewed public feud weighed on the broader tech sector.
Trade Talks Narrow Ahead of Tariff Deadline
The Biden administration is scaling back Trump’s push for sweeping reciprocal trade deals. With the July 9 tariff deadline looming US officials are now seeking narrower agreements according to the Financial Times.
Fed in Focus Powell Cautious Amid Tariff Pressure
At an ECB forum in Sintra Federal Reserve Chair Jerome Powell responded to Trump’s recent call for a 250 basis point rate cut down to 1 percent. Powell said tariffs are making the Fed more cautious about easing though he described the US economy as healthy.
Labor Market Shows Signs of Stasis
The latest JOLTS report showed US job openings rose more than expected in May while hiring and quits rates remain near decade lows. Economists say the labor market is in a state of stasis and more employment data is expected later this week.
Stay tuned for further developments as Washington Wall Street and the Fed continue to drive the market narrative.