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US stocks edged lower before the bell on Tuesday, setting up for a pullback from record highs as Wall Street watched for progress on trade talks and on President Trump’s massive budget bill in the Senate.
S&P 500 futures (ES=F) dropped 0.2% after closing above 6,200 for the first time on Monday, while Dow Jones Industrial Average futures (YM=F) traded broadly flat. Contracts on the tech-heavy Nasdaq 100 (NQ=F) lost 0.3%, with Tesla (TSLA) stock sliding as CEO Elon Musk’s feud with Trump flared up again.
Senate lawmakers voted through the night and into Tuesday morning on amendments to finalize Trump’s signature tax and spending bill, racing to meet the president’s desired July 4 deadline.
While Republican wrangling over the measures continues, one amendment passed with big bipartisan support: A strike-down of the ban on AI regulation by states. The vote is a blow to tech companies, many of which have supported Trump.
Another looming deadline has prompted the US to scale back Trump’s push for full-blown “reciprocal” deals with trading partners, the Financial Times reported. Instead, officials are racing to find narrower agreements before July 9, when the president’s sweeping “reciprocal” tariffs are set to resume.
Read more: The latest on Trump’s tariffs
Jerome Powell steps up to speak later, fresh from another Trump attack pushing the Federal Reserve chair to slash interest rates to 1% — a huge 250-point reduction. As markets grow optimistic that a rate cut is around the corner, the focus is on what Powell says about the Fed’s policy stance at the ECB forum in Sintra, Portugal.
Those Fed hopes have put the Thursday’s release of the June jobs report in high focus this week. The watch is on for signs of cooling in the labor market that could bolster the case for a cut sooner rather than later. Tuesday’s Job Openings and Labor Turnover Survey (JOLTS) kicks off this week’s labor-market-focused data.
LIVE 7 updates
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Senate Republicans drop AI protections as Trump’s megabill hit snags in Senate
AI chip stocks, including Nvidia (NVDA), fell across the board, and Big Tech names were little changed premarket after an artificial intelligence provision was stripped from President Trump’s “big, beautiful bill” overnight.
In a middle-of-the-night push to pass the megabill, Senate Republicans dropped the ban on state regulations of AI for a decade, which had gained support in Silicon Valley. The idea appeared to be dead after Sen. Marsha Blackburn of Tennessee turned against a compromise plan Monday evening.
Yahoo Finance’s Ben Werschkul reports:
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6 questions facing US stock investors as 2025’s second half kicks off
From President Trump’s tariffs to the Federal Reserve rate cut saga, the US stock market has just completed a roller-coaster first half of the year. The S&P 500 (^GSPC) is up 5% year to date, rebounding from its April slump after Trump’s “Liberation Day” tariffs were announced. But what should investors watch for in the second half of 2025? Here’s a look at six key questions facing US stock investors at the start of the second half.
Reuters reports:
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How Boeing, Walmart, and Tesla tell the stock story of 2025
Yahoo Finance’s Hamza Shaban reports in today’s Morning Brief:
Read more here on how these stocks tell investors about stock trading in 2025.
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Good morning. Here’s what’s happening today.
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Trending tickers: Wolfspeed, Robinhood and Tesla
Here are some top stocks trending on Yahoo Finance in premarket trading:
Wolfspeed (WOLF) filed for Chapter 11 bankruptcy protection on Monday, as the chipmaker grapples with huge debt amid slowing demand from electric vehicle and industrial markets.
Shares of the company — which makes chips using silicon carbide, a more energy-efficient material than traditional silicon — rose 90% in premarket trading on Tuesday.
Robinhood (HOOD) stock rose 2% before the bell on Tuesday. On Monday, Robinhood CEO and chairman Vlad Tenev shared some insights into retail investor sentiment on Market Domination with Yahoo Finance Executive Editor Brian Sozzi.
“I think that the the impact on society long-term from AI and cryptocurrency, there’s there’s optimism about that and and I think that’s what you’re seeing reflected in the markets,” Tenev said.
Tesla (TSLA) stock fell 4% in premarket trading after President Trump threatened to withdraw government subsidies
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Tesla stock falls as investors brace for Q2 sales
Tesla’s (TSLA) stock is sliding in premarket trade as investors brace for what’s expected to be another tough quarter for deliveries.
The EV maker’s sales in Sweden and Denmark dropped over 60% year on year in June, underlining the challenges facing the company as rivals from China and elsewhere make headway. A 31% fall for deliveries of the Model Y in those countries signaled the revamp may be falling short of reviving Tesla’s fortunes, despite gains in Norway.
Tesla shares fell almost 6% early on Tuesday morning, also under pressure after President Trump again threatened to withdraw government subsidies from Elon Musk’s companies. The Tesla CEO recently ramped up his officer ratcheted up his criticism of Trump’s flagship tax megabill.
Yahoo Finance’s Pras Subramanian reports on what Wall Street is watching from Tesla:
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Gold back on positive track with Fed and tariffs in focus
Gold (GC=F) rose for a second consecutive day with positive sentiment brewing around the potential of the Federal Reserve to cut rates.
Bloomberg reports:
