Rich Asplund
8 min read
In This Article:
The S&P 500 Index ($SPX) (SPY) today is down -0.28%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.80%. September E-mini S&P futures (ESU25) are down -0.28%, and September E-mini Nasdaq futures (NQU25) are down -0.82%.
Stock indexes today are mostly lower, with the S&P 500 and Nasdaq 100 consolidating below Monday’s all-time highs. Tesla is down more than -5% to lead technology stocks lower and weigh on the overall market after President Trump threatened to withdraw subsidies from Elon Musk’s companies in response to Musk’s criticism of the Republican reconciliation bill. The markets are also monitoring progress on trade talks ahead of President Trump’s July 9 deadline, and Congressional wrangling over passage of President Trump’s tax and spending bill.
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The Senate is still considering the Republican reconciliation bill, with Treasury Secretary Bessent predicting the Senate will pass the bill later today. The reconciliation bill has the debt ceiling hike that is necessary to avert a Treasury default when the Treasury runs out of borrowing authority sometime between mid-August and late September. The dollar index fell to a 3-1/3 year low today as the nonpartisan Congressional Budget Office estimates that the bill would add nearly $3.3 trillion to US budget deficits over the next decade. After the Senate passes the bill, it will go back to the House for their consideration.
Stocks remained lower today after the better-than-expected US ISM and JOLTS reports pushed bond yields higher and dampened expectations of imminent Fed rate cuts. Also, Fed Chair Powell reiterated his wait-and-see stance on interest rates as he expects tariffs to show up in inflation data over the coming months.
The US June ISM manufacturing index rose +0.5 to 49.0, stronger than expectations of 48.8. Also, the June ISM prices paid sub-index rose +0.3 to 69.7, stronger than expectations of 69.5.
US May JOLTS job openings unexpectedly rose +374,000 to a 6-month high of 7.769 million, showing a stronger labor market than expectations of a decline to 7.300 million.
