S&P 500, Nasdaq edge down as Tesla slides
Tesla dropped 5% after Trump threatened to cut off the billions of dollars in subsidies that Musk's companies get from the federal government, after Musk revived his criticism of Trump's wide-ranging tax-cut and spending bill.
The Republican-controlled US Senate voted 51-50 to pass the bill that enshrines many of Trump's top priorities into law while adding $3.3 trillion to the national debt. The bill, now headed back to the House for final approval, aims to partly cover the tax-reduction costs by cutting Medicaid and some food assistance programs for low-income Americans.
The blue-chip Dow got a boost from healthcare stocks such as UnitedHealth and Amgen, and was just about 600 points away from its all-time high touched in December.
Data showed US job openings increased unexpectedly in May, suggesting labor market resilience despite trade and economic uncertainties. US Treasuries fell in response, pushing the 2-year yield to a near one-week high.
Earlier in the day, Federal Reserve Chair Jerome Powell reiterated the US central bank plans to 'wait and learn more' about the impact of tariffs on inflation before lowering rates, again setting aside Trump's demands for immediate and deep rate cuts.
The S&P 500 and the Nasdaq Composite posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts helped markets recover from concerns about chaotic US trade policies and geopolitical tensions.
Market focus now shifts to Thursday's nonfarm payrolls report, which could help recalibrate bets for a rate cut as soon as July.
Money markets are pricing in a 21.2% likelihood for a July rate cut and see about 64 basis points worth of cuts by the end of this year, per LSEG data.
At 11:43 a.m. ET, the Dow Jones Industrial Average rose 394.56 points, or 0.89%, to 44,489.33, the S&P 500 lost 18.03 points, or 0.29%, to 6,186.92 and the Nasdaq Composite lost 212.08 points, or 1.04%, to 20,157.66.
Technology stocks, down 1.4%, led the decline among the major S&P sectors, while material stocks climbed 2.4% and the healthcare sector added 2%.
Advancing issues outnumbered decliners by a 1.85-to-1 ratio on the NYSE and a 1.11-to-1 ratio on the Nasdaq.
The S&P 500 posted 18 new 52-week highs and no new lows while the Nasdaq Composite recorded 63 new highs and 53 new lows.
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