Mixed stock indexes due to higher bond yields; tech stocks lower

From Nasdaq: 2025-07-01 18:08:00

Stock indexes closed mixed on Tuesday, with the Dow Jones hitting a 4-1/2 month high while the S&P 500 and Nasdaq 100 dipped. Tesla’s -5% drop led tech stocks lower after President Trump threatened subsidies withdrawal. Congress passed the reconciliation bill, raising the debt ceiling to avert a Treasury default. ISM and JOLTS reports influenced bond yields and Fed rate cut expectations.

Fed Chair Powell expects tariffs to affect inflation, while China’s Caixin PMI showed growth. Q2 S&P 500 earnings forecast a modest increase, highlighting sector disparities. Trade talks and tax bill progress drive market sentiment. Economic data releases this week include ADP employment, nonfarm payrolls, and ISM services index. Federal funds futures hint at a 21% chance of a rate cut at the FOMC meeting.

Overseas markets varied, with the Euro Stoxx 50 down, China’s Shanghai Composite up, and Japan’s Nikkei down. T-note prices fell on speculation around the reconciliation bill’s impact on deficits and hawkish Fed policy views. European government bond yields declined. Eurozone CPI and manufacturing PMI data were in line with expectations. ECB member Kazaks warned of inflation risks from a stronger euro, with markets pricing in a 6% chance of an ECB rate cut.

US stock movers included Tesla, chip stocks like AMD and Nvidia, and diabetes device makers. Warner Bros Discovery, AeroVironment, and other companies faced share price declines. Macau casino operators surged on strong gaming revenue data, while Packaging Corporation of America and Ryder System saw gains. Hasbro, Nike, CH Robinson Worldwide, and Trade Desk also closed higher. Earnings reports for 7/2 include Franklin Covey Co and UniFirst Corp/MA.



Read more at Nasdaq: Stocks Settled Mixed as Higher Bond Yields Weigh on Sentiment