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.
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