On July 1, the Nasdaq closed down 0.82%, weighed by losses in major tech stocks, particularly Tesla, which fell over 4% following renewed tensions between CEO Elon Musk and President Donald Trump. The NYFANG index also dropped more than 1%. Meanwhile, the Dow rose 0.91% in a session marked by low liquidity and mixed signals. Investors reacted to the Senate's passage of Trump's costly tax package and his firm stance on trade deal deadlines. Fed Chair Jerome Powell reiterated a cautious approach to rate cuts, citing uncertainty around tariffs and inflation.
00:00The Nasdaq closed lower on Tuesday, July 1st, ragged down by weakness in large-cap tech stocks,
00:06while the Dow ended higher in a volatile session marked by seasonally low liquidity.
00:11The session was marked by mixed signals, a deny-find index, which tracks 10 heavily-traded tech names, fell more than 1%.
00:21U.S. President Donald Trump said he was not thinking of extending the July 9 deadline for countries to negotiate trade deals with the U.S.
00:30The Senate's passage of Trump's tax package had investors weighing the bill's stimulative effects against its multi-trillion-dollar cost.
00:38Tesla shares were hit by a renewed spat between CEO Elon Musk and Trump,
00:43while economic data backed by the U.S. central bank's patient stance on rate cuts.
00:48Tesla dropped more than 4% after Trump threatened to cut off the billions of dollars in subsidies that Musk's companies get from the federal government.
00:56Musk had revived his criticism of Trump's wide-ranging tax cut and spending bill.
01:03Earlier in the day, Federal Reserve Chair Jerome Powell reiterated the U.S. central bank plans to wait and learn more
01:09about the impact of tariffs on inflation before lowering rates against setting aside Trump's demands for immediate and deep rate cuts.
01:17Chair Powell went out of his way to make clear that although he was going to focus very much on doing his job free of any political persuasion,
01:30politics has played into how the Fed has reacted.
01:34And the threat of tariffs and the implementation of tariff policy had put the Fed on hold when it would have otherwise been happy to cut rates,
01:44which was a bit of a bombshell news item from the chairman of the central bank,
01:51but practically does illustrate that there is a true myth of independence of the Fed.
01:57that it is impossible to drive fiscal policy and monetary policy of the country being completely unaware of political policies and pressures
02:09or the fiscal state of the economy.
02:12And Chairman Powell made that very clear today.
02:15The Dow Jones Industrial Average rose 400.17 points or 0.91% to 44,494.94.
Be the first to comment