Stock market today: S&P 500, Nasdaq pull back from record run as Senate passes Trump tax bill, Tesla sinks

Senate Republicans were able to push President Trump’s signature tax legislation over the line to pass it by a thin margin.

Yahoo Finance’s Ben Werschkul breaks down the Senate’s changes to the complex, nearly 900-page bill that are set to reshape the US economy. Here are three major impacts to businesses and the economy:

Changes for both the individual and corporate tax structure:

A focus on energy:

Final-hour healthcare changes:

Read more here about the bill’s impacts on taxes and more.

US stocks remained a mixed bag on Tuesday after Senate lawmakers voted to advance President Trump’s tax and spending bill.

Vice President JD Vance broke the 50-50 tie to pass the bill after Republican lawmakers pulled an all-nighter to make several last-minute changes and break through Democratic opposition and the Senate’s thin margins. The “big, beautiful bill” now heads to the House for a vote on the Senate’s changes.

The S&P 500 (^GSPC) briefly pared some losses but didn’t break into positive territory following the news. The benchmark index was down 0.1% in midafternoon trading.

The tech-heavy Nasdaq Composite (^IXIC) led losses, falling around 0.8%, as Tesla (TSLA) stock fell more than 4% after a feud between Elon Musk and Trump flared up again.

The Dow Jones Industrial Average (^DJI), on the other hand, rose over 1% in afternoon trading.

The Institute for Supply Management’s (ISM) manufacturing PMI registered a reading of 49 in June, up slightly from May’s reading of 48.5 Readings above 50 for this index indicate an expansion in activity, while readings below 50 indicate contraction. The manufacturing sector has been in contraction for most of the past two years.

The price paid index, which is seen as a potential indicator of future prices increases that will passed on by businesses, increased to 69.7 up from 69.4 the month prior. Meanwhile, the employment index registered a reading of 45%, down from 46.8% in May.

“Despite the modest gain in the ISM manufacturing index in June, the details of the report point to continued struggles for domestic manufacturers,” Oxford Economics senior economist Matthew Martin wrote in a note to clients. “Demand uncertainty and bartering over who foots the tariff bill are leading to delays or cancellations in orders. Until tariff policies and geopolitical issues fade, this is unlikely to change.”

Shares of struggling chipmaker Wolfspeed (WOLF) climbed 11% Tuesday, though the stock was priced at less than $1 as the company filed for Chapter 11 bankruptcy.

The North Carolina-based semiconductor firm was building a $5 billion plant that would employ 1,800 workers in the state with funding from the CHIPS Act. Delays in receiving its funding from the Trump administration have amplified the company’s financial challenges.

Wolfspeed said in a statement Monday that it’s looking to slash $4.6 billion from its debt pile through a creditor-backed restructuring plan.

“By taking this proactive step, the Company expects to be better positioned to execute on its long-term growth strategy and accelerate its path to profitability,” the company said.

CEO Robert Feurle added, “Looking ahead, we remain laser-focused on delivering cutting-edge products to our customers and working with our vendors in the normal course.”

Apple (AAPL) stock jumped 2% Tuesday following a report from Bloomberg that the iPhone maker is considering using AI technology from startups Anthropic (ANTH.PVT) or OpenAI (OPAI.PVT) to power a new version of Siri.

Apple has spoken to both companies about using their large language models for its voice assistant, Bloomberg wrote, citing unnamed sources.

Apple has struggled to catch up to its peers on AI, and its efforts to launch a new AI-powered Siri have fallen flat. Shares of the company have lagged behind its “Magnificent Seven” peers, save for Tesla (TSLA), and are down 16% in 2025.

Robinhood (HOOD) shares jumped as analysts issued bullish notes on the stock following its launch of new crypto services at an event Monday.

“HOOD’s incredible product velocity makes it hard to keep up with innovation,” Mizuho analyst Dan Dolev wrote in a note to clients Tuesday, upgrading his price target on the stock to $99 from $80. Shares traded around $96 on Tuesday morning.

KeyBanc analyst Alex Markgraff also raised his price target on the stock to $110 from $60 following the event, according to Bloomberg data.

Robinhood stock is up nearly 158% in 2025 as crypto-related stocks have rallied on the heels of President Trump’s election. Trump has favored deregulation of the fraud-ridden crypto industry, unlike his predecessor, Joe Biden.

Coinbase (COIN) has risen 40% this year, while bitcoin treasury company Strategy (MSTR) is up 34%. Bitcoin (BTC-USD) itself is up 13% in 2025.

Job openings rose more than expected in May while investors closely watch for any signs of slowing in the labor market as debate over when the Federal Reserve could cut interest rates again intensifies.

New data from the Bureau of Labor Statistics showed 7.76 million jobs open at the end of May, an increase from the 7.39 million seen the month prior and the highest level since November 2024. The April figure was revised higher by 4,000 from the 7.39 million open jobs initially reported. Economists surveyed by Bloomberg had expected Tuesday’s report to show 7.3 million openings in May.

The Job Openings and Labor Turnover Survey (JOLTS) also showed that 5.5 million hires were made during the month, down from the 5.61 million made during April. The hiring rate ticked lower to 3.4% from 3.5%. In one sign that workers remain cautious about labor market conditions, the quits rate, a sign of confidence among workers, moved up to 2.1% from 2% in April.

Still, both the hiring and quits rates are hovering near decade lows, reflecting what economists have described as a labor market in “stasis.”

Read more here.

Federal Reserve Chair Jerome Powell has begun speaking about the Fed’s policy stance at an ECB forum in Sintra, Portugal, where he said that tariffs are causing the central bank to take its time before cutting interest rates.

When asked if the Fed would have cut interest rates by more by now if it weren’t for higher tariffs, Powell stated, “I think that’s right.”

“In effect, we went on hold when we saw the size of the tariffs,” Powell continued. “Essentially, all inflation forecasts for the United States went up materially as a consequence of the tariffs.”

Powell noted that the US economy remains healthy overall but that he expects to see the effects of tariffs filter through the economic data in the coming months. In recent days, Powell has faced increased pressure, including in the form of handwritten notes, from President Trump to lower interest rates.

“Ignore the tariffs for a second,” Powell said of the economy. “Inflation is behaving pretty much exactly as we have expected and hoped that it would. We haven’t seen effects much yet from tariffs, and we didn’t expect to by now.”

Watch Powell speak live below:

US stocks pulled back from record highs Tuesday morning as President Trump’s massive budget bill made its way through the Senate and investors looked for progress on trade talks ahead of the July 9 deadline.

The S&P 500 (^GSPC) dropped about 0.3% after closing above 6,200 for the first time on Monday, while the Dow Jones Industrial Average (^DJI) traded roughly flat.

The tech-heavy Nasdaq Composite (^IXIC) fell 0.4%, with Tesla (TSLA) stock plummeting more than 7% as CEO Elon Musk’s feud with Trump reignited. Nvidia (NVDA) fell 1% and Meta (META) dropped fractionally after the two members of the “Magnificent Seven” hit fresh records the prior day.

Tesla (TSLA) stock sank as much as 6% before the market open Tuesday as the feud between CEO Elon Musk and President Trump reignited overnight, with the president once again threatening to cut government subsidies across Elon Musk’s businesses, including Tesla and SpaceX (SPAX.PVT).

“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote on his social media platform Truth Social early Monday.

“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”

The threats followed Musk’s criticism of Trump’s “big, beautiful” tax and spending bill over the weekend after the Senate advanced the bill with last-minute additions that would eliminate electric vehicle tax credits, which benefit Tesla customers, earlier than expected and add $1 trillion to the bill’s original price tag.

Read the full story here.

The 10-year Treasury yield (^TNX) fell about 2 basis points to 4.20% on Tuesday — hitting its lowest level in two months — ahead of Fed Chair Jerome Powell’s speech today at the ECB forum in Sintra, Portugal.

Powell will join a panel of central bankers at the ECB forum to discuss the Federal Reserve’s policy stance as pressure from the White House to cut interest rates has ratcheted up. On Monday, Trump sent Powell a signed note that lambasted the Fed chair for not slashing rates.

Bloomberg reports:

Read more: What is the 10-year Treasury note, and how does it affect your finances?

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:

Read more here.

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:

Read more here.

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.

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

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:

Read more here.

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:

Read more here.