Tags: stocks | tax | bill | record | trade | deal

S&P 500, Nasdaq Dip From Record Highs

S&P 500, Nasdaq Dip From Record Highs
The New York Stock Exchange (AP)

Tuesday, 01 July 2025 09:41 AM EDT

The S&P 500 and Nasdaq indexes opened lower Tuesday, after touching record highs a day earlier, as investors monitored U.S. trade talks and a voting marathon in Washington over President Donald Trump's tax and spending bill.

The Dow Jones Industrial Average fell 33.3 points, or 0.08%, at the open to 44,061.49. The S&P 500 fell 17.7 points, or 0.29%, at the open to 6,187.25​, while the Nasdaq Composite dropped 79.1 points, or 0.39%, to 20,290.611 at the opening bell. 

The S&P 500 and the Nasdaq Composite reached 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.

U.S. senators were still voting on Tuesday on a potentially long list of amendments to Trump's bill that is expected to bring a $3.3 trillion hit to the nation's debt pile, fueling uncertainty among investors.

Meanwhile, Trump expressed frustration with U.S.-Japan trade negotiations and Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches despite good-faith negotiations.

Tesla's shares dropped 4.7% premarket 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.

The S&P 500 and 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.

The blue-chip Dow on Monday closed 2.2% below its all-time high touched in December.

S&P Global and ISM's June manufacturing activity surveys, May job openings data as well as Fed Chair Jerome Powell's comments at a European Central Bank forum later in the day will be parsed for hints on U.S. monetary policy outlook.

Soft economic data in recent weeks and expectations of Trump picking a dovish central bank head have supported bets of interest rate cuts from the Fed this year and next.

Ahead of Thursday's crucial payrolls data, money markets were pricing in 68 basis points of rate cuts by the end of 2025 and about 135 bps of cuts by October next year, per LSEG data.

Among other stocks, stablecoin firm Circle rose 2.1% on news it was applying to create a national trust bank in the U.S.

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
The S&P 500 and Nasdaq indexes opened lower Tuesday, after touching record highs a day earlier, as investors monitored U.S. trade talks and a voting marathon in Washington over President Donald Trump's tax and spending bill.
stocks, tax, bill, record, trade, deal
414
2025-41-01
Tuesday, 01 July 2025 09:41 AM
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