Stock indexes lower as Tesla drops and Senate considers Republican reconciliation bill

From Nasdaq: 2025-07-01 11:56:00

Stock indexes are mostly lower today, with S&P 500 and Nasdaq 100 consolidating below all-time highs. Tesla drops over 6% after Trump threatens to withdraw subsidies. Senate considers Republican reconciliation bill with debt ceiling hike. China’s manufacturing PMI beats expectations. Q2 earnings for S&P 500 expected to rise 2.8% y/y, lowest in 2 years. Markets await trade talks and tax bill progress.

European bond yields decline, Eurozone CPI meets expectations. ECB inflation expectations ease. Germany’s labor market stronger than expected. Swaps price in 6% chance of ECB rate cut. Tesla and chip stocks drag S&P 500 and Nasdaq 100 lower. Macau casino stocks rally on gaming revenue growth. Nike, Trade Desk, Hasbro, and Ryder System see gains.

Federal funds futures suggest 19% likelihood of rate cut at FOMC meeting. T-notes fall as Congress nears passage of Trump’s bill. European bonds strengthen, T-notes benefit from trade optimism. Markets look to ISM manufacturing index, job openings data. Powell discusses monetary policy at ECB retreat. Earnings reports scheduled for July 1.



Read more at Nasdaq: Stocks See Pressure as Reconciliation Bill Inches through Congress