Tech stocks falter, Treasury yields rise, trade tensions weigh on market sentiment

2025-07-02 06:33:00

The S&P 500 dipped from record highs as tech stocks faltered and Treasury yields rose, while the Dow Jones climbed. Optimism over trade tensions easing and a possible Fed rate cut waned, with key policy decisions looming.

The U.S. administration’s shift to issue-specific trade deals dampened investor spirits, reducing hopes for major tariff rollbacks. Talks with Japan have been challenging, leading to concerns in the market.

Rising Treasury yields pressured equities, especially in tech, despite Fed Chair Powell’s cautious approach. Trump’s push for aggressive rate cuts adds uncertainty. Analysts and investors are closely monitoring earnings and economic data to gauge market impact.

With trade uncertainties, Fed policy, and key data releases in focus, U.S. markets face volatility. The upcoming tariff deadline and Powell’s testimony will shape investor sentiment in the coming weeks.