US stock market today: S&P 500, Nasdaq slip as Tesla drops, Trump tariff plan and tax bill take center stage- US stock market today opened mixed on Tuesday as Wall Street closely tracked developments surrounding President Trump’s proposed tax and tariff policy, alongside Fed policy signals and labor market updates. While the S&P 500 dipped just 0.1% after breaching the 6,200 level for the first time on Monday, the Nasdaq Composite dropped a sharper 0.5%, weighed down by a notable fall in Tesla stock. In contrast, the Dow Jones Industrial Average rose nearly 0.6% as investors looked for signs of economic strength and progress in global trade talks.
Tesla’s decline followed renewed tensions between CEO Elon Musk and President Donald Trump, even as market attention remained fixed on the administration’s ambitious tax bill and the potential return of reciprocal tariffs set to resume by July 9.
Major Indices Performance (July 1, 2025)
- S&P 500
- Closed slightly lower, slipping from a fresh record high above 6,200.
- Pulled back as traders eye tax reforms and tariff uncertainty.
- Nasdaq Composite
- Down ~0.5%, pressured by a sharp decline in Tesla stock.
- Tech sector under pressure due to EV-related policy tensions.
- Dow Jones Industrial Average
- Up ~0.6%, outperforming other benchmarks.
- Led by gains in traditional industrials and energy stocks.
Tesla (TSLA)
- Dropped over 6% intraday, one of the worst performers in the S&P 500.
- Hit by:
- Trump’s proposed rollback of EV subsidies.
- Public feud between Elon Musk and Donald Trump.
- Heaviest drag on Nasdaq.
Why did the S&P 500 and Nasdaq pull back after hitting highs?
After hitting fresh records on Monday, the S&P 500 backed off slightly on Tuesday, closing down around 0.1%. The Nasdaq Composite, which is heavily weighted in tech stocks, fell by 0.5%, primarily due to a sharp decline in Tesla (TSLA) shares. Tesla’s drop came amid heightened political tension, as Elon Musk criticized Trump’s administration over tariff policies and interest rate pressure on the Federal Reserve.
Meanwhile, the Dow Jones managed a gain of nearly 0.6%, reflecting resilience in more traditional, non-tech-heavy sectors. Investors seemed to rotate out of high-growth tech names and into industrials and consumer staples.
What’s happening with Tesla and Elon Musk’s dispute with Trump?
Tesla’s stock took a noticeable hit on Tuesday as CEO Elon Musk once again clashed with President Trump—this time over trade and economic policy. Musk criticized Trump’s ongoing push for tariff escalation and demanded clarity on proposed tax changes aimed at boosting manufacturing.
This public friction between Musk and the President triggered concern among investors, especially given Tesla’s reliance on international markets and global supply chains. Musk’s comments also coincided with a drop in tech confidence overall, dragging the Nasdaq down with it.
What’s in Trump’s tax bill and why does it matter for markets?
President Trump’s massive tax bill, now moving through the Senate, is being closely watched on Wall Street. The proposal includes broad cuts for both corporations and individuals, and aims to revamp the current code by offering incentives for domestic manufacturing and imposing reciprocal tariffs on countries with high import duties on US goods. With a July 9 deadline approaching, sources cited by the Financial Times say the administration may shift focus from sweeping trade deals to narrower, quicker agreements. This urgency has markets on edge as investors try to price in potential impacts on business costs, supply chains, and earnings.
Policy & Political Drivers
- Trump’s $3.3 trillion tax-and-spending bill under Senate review.
- Includes deep cuts to aid programs (Medicaid, food stamps).
- Massive corporate and income tax cuts.
- EV subsidy cuts and new tariff proposals threaten tech/EV sectors.
How is the Federal Reserve responding to political and economic pressure?
Fed Chair Jerome Powell, speaking at a central banking forum in Sintra, Portugal, addressed market concerns about interest rates. Trump has publicly urged the Fed to slash rates down to 1%, calling for an aggressive 250-basis-point cut.
However, Powell appeared cautious. He acknowledged that tariffs are affecting the Fed’s decision-making process, noting they’re a key reason behind the central bank’s current wait-and-see approach. Despite this, Powell maintained that the US economy remains strong, which could delay any immediate rate cuts.
What did the latest labor market data reveal about the US economy?
On Tuesday, the Job Openings and Labor Turnover Survey (JOLTS) showed that job openings rose more than expected in May. However, the hiring and quits rates stayed near decade lows—an indication that the labor market is currently in what some economists call a “stasis” phase.
The data suggests businesses may be cautious about expanding headcount until there’s more clarity on inflation, rate cuts, and the broader economic outlook. As the week progresses, additional labor data will be key to understanding whether the economy is cooling or simply holding steady.
US stock market today:
The US stock market today showed mixed performance as major indexes moved in different directions. The S&P 500 dipped by around 0.2%, pulling back slightly from its all-time high. The Nasdaq-100 dropped about 0.8%, largely dragged by tech stock weakness. Meanwhile, the Dow Jones Industrial Average rose nearly 0.65%, supported by strong gains in industrial and consumer sectors.
Top Gainers and Biggest Losers
Top Gainers
- Wynn Resorts jumped around 7.9%
- Las Vegas Sands rose 7.8%
- MGM Resorts gained 6.4%
- In the Dow 30: Nike climbed 3.6%, Apple advanced 2.2%, and UnitedHealth moved up 1.7%
These gains were driven by stronger performance in leisure, travel, and healthcare sectors.
Biggest Losers
- Tesla (TSLA) tumbled between 4.5% and 6.4% after tensions reignited between Elon Musk and President Trump regarding tax policy.
- Palantir fell around 2%
- AMD dropped approximately 2.6%
- Super Micro Computer declined 2.7%
- Albemarle lost about 2.7%
- Small-cap names also saw steep declines: Oragenics (−58%), Youxin Technology (−73%), Sonim Technologies (−47%), and GeoVax Labs (−49%)
What’s Driving Today’s Market Moves?
- Federal Reserve Chair Jerome Powell emphasized a cautious approach, stating that tariffs are contributing to inflation pressure, which may delay expected interest rate cuts.
- President Donald Trump’s tax bill and upcoming tariff deadline on July 9 added further market uncertainty. Tesla’s stock drop came as Musk criticized the administration’s economic policies.
- Casino stocks surged following strong revenue updates from Asia, while many large tech stocks lagged behind.
What’s next for Wall Street amid Trump’s economic policies?
With Trump’s tax bill, tariff decisions, and Fed policy shifts all converging this month, investors are entering a period of heightened uncertainty. The July 9 deadline for tariff implementation adds further urgency to trade negotiations. At the same time, tech stocks like Tesla remain under political and regulatory pressure, leaving the Nasdaq particularly vulnerable.
As investors wait for more clarity, market volatility is likely to stay elevated. Analysts suggest watching Trump’s next public remarks, the Senate’s movement on tax reform, and Powell’s tone in the coming days to gauge how the market may shift next.
- S&P 500 (^GSPC): ⬇ 0.1% after closing above 6,200 on Monday
- Nasdaq Composite (^IXIC): ⬇ 0.5%
- Dow Jones Industrial Average (^DJI): ⬆ 0.6%
- Tesla (TSLA): Fell significantly following Musk-Trump clash
- JOLTS May Report: Job openings beat estimates, hiring/quits flat
- Fed Chair Powell: Economy healthy, no immediate rate cut
FAQs:
Q1: Why did Tesla stock drop today?
Tesla stock fell due to Elon Musk’s renewed clash with President Trump over tariffs and trade.
Q2: What’s in Trump’s new tax bill?
Trump’s tax bill includes corporate cuts and plans for reciprocal tariffs starting July 9.