On Tuesday, the S&P 500 Index closed down 0.11%, while the Dow Jones Industrials Index rose 0.91%, reaching a 4-1/2 month high. The Nasdaq 100 dipped 0.89%. This mixed performance followed President Trump’s threat to withdraw subsidies from Tesla, which led to a more than 5% drop in the company’s shares and contributed to broader losses in technology stocks. September E-mini S&P futures decreased by 0.12% and E-mini Nasdaq futures fell by 0.91%.
The Senate passed the Republican reconciliation bill by a narrow 51-50 vote, which now moves to the House amid expectations that it will be approved quickly, potentially by July 4. The bill is projected to increase U.S. budget deficits by approximately $3.3 trillion over the next decade, contributing to pressures in the Treasury markets. Additionally, reports showed the June ISM manufacturing index rose to 49.0, slightly above expectations, while May job openings increased unexpectedly by 374,000, underscoring a resilient labor market.
In global markets, the Euro Stoxx 50 closed down 0.39%, while Japan’s Nikkei fell 1.24%. Meanwhile, the China June Caixin manufacturing PMI increased to 50.4, indicating stable growth. The U.S. dollar index also hit a 3-1/3 year low as investor concerns over the reconciliation bill’s implications for national debt mount. Upcoming economic releases will focus on employment data, with expectations for a gain of 90,000 jobs in June.
