Powell Doesn't Rule Out a Fed Rate Cut in July
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
Stock market today: Dow jumps, Nasdaq slides as Trump tax bill sails through Senate
US stocks were mixed on Tuesday as President Trump's massive budget bill passed in the Senate and Wall Street watched for progress on trade talks. The S&P 500 (^GSPC) closed down 0.1%, pulling back from a record close after finishing above 6,200 for the first time on Monday. The tech-heavy Nasdaq Composite (^IXIC) fell around 0.7%, with Tesla (TSLA) stock sliding 5% as CEO Elon Musk's feud with Trump flared up again. The Dow Jones Industrial Average (^DJI) rose about 1%, largely led by a pop in healthcare stocks including United Healthcare (UNH), which rose 4.5%. Senate lawmakers voted 50-50, with Vice President JD Vance breaking the tie, to pass Trump's signature tax and spending bill, racing to meet the president's desired July 4 deadline. The bill now goes back to the House, which will vote on the Senate's changes. Republicans wrangled over the bill's measures overnight, including one amendment that passed with strong bipartisan support: A strike-down of the ban on state-level AI regulation. They also ended up slightly softening a phase out of clean-energy tax credits. Another looming deadline has prompted the US to scale back Trump's push for full-blown "reciprocal" deals with trading partners, the Financial Times reported. Instead, officials are racing to find narrower agreements before July 9, when the president's sweeping "reciprocal" tariffs are set to resume. Read more: The latest on Trump's tariffs Meanwhile, investors closely watched commentary from Fed Chair Jerome Powell and labor market data as debate intensifies over when the Federal Reserve could cut interest rates. Jerome Powell spoke about the Fed's policy stance at an ECB forum in Portgual on Tuesday, fresh from another Trump attack pushing the Federal Reserve chair to slash interest rates to 1% — a huge 250-point reduction. Powell remarked that tariffs are causing the central bank to take its time before cutting interest rates, but he said the US economy remains healthy overall. Fresh data Tuesday showed job openings rose more than expected in May. The hiring and quits rates remain near decade lows, reflecting what economists have described as a labor market in "stasis." The Dow Jones Industrial Average (^DJI) was the lone major index in the green on Tuesday led by several healthcare stocks catching bids. UnitedHealthcare (UNH) stock, which had been the worst performer in the Dow this year and down more than 35% to start 2025, rose about 4.5% on Tuesday. Tuesday's market action proved to be positive for a slew of laggards through the first half of this year. The small-cap Russell 2000 Index (^RUT), which had underperformed all three major averages through the first six months of this year, rose more than 1% on Tuesday. Below is a look at how every Dow component performed on Tuesday. Stocks staged a historic comeback from their April lows, finishing the first half of the year on a high note with the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) securing back-to-back all-time records. A large part of the market's gains has hinged on easing geopolitical tensions and tariff-related deescalations, including the emergence of the so-called TACO trade, an acronym for "Trump Always Chickens Out." The phrase captures a belief among some investors that the president often talks tough on tariffs but rarely follows through. That assumption has helped fuel a tailwind for markets in recent months as traders increasingly bet on last-minute policy pivots. Trade deal frameworks with China and the UK are reportedly now on the table ahead of Trump's self-imposed July 9 deadline. This has led investors to price in a "Goldilocks scenario" for stocks, with sustained earnings growth, little effects from tariffs, and rate cuts from the Federal Reserve. But Wall Street pros are signaling caution as they assess the path forward, which still includes many unknowns. "Just as Goldilocks awoke from her sleep to confront three bears, there are several areas where this optimism is likely to be challenged," JPMorgan's economics and policy team, led by Bruce Kasman, wrote in a recent client note. Kasman cautioned investors not to "get carried away by inflation momentum," warning that tariffs are still set to rise despite ongoing trade negotiations. This will add pressure to a US economy already grappling with softer consumer demand and signs of stalling global factory activity. "The economy is entering the second half of the year on wobbly footing," Comerica Bank chief economist Bill Adams added. Read more here. The latest Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday showed 7.76 million jobs were open at the end of the May, the highest level since November 2024. After several signs of slowing in the labor market have emerged over the past months in areas like continuing unemployment claims and slowing hiring, Tuesday's data reminds us that there's a bit of something for everyone in the current economic data being analyzed as investors debate when the Federal Reserve will cut interest rates next. Tuesday's data suggested the labor market remained "healthy" in May, Capital Economics North America economist Alexandra Brown wrote in a note to clients on Tuesday. Oxford Economics lead US economist Nancy Vanden Houten wrote in a note that there was "nothing" in the May JOLTS report to shake the Fed's patient approach. But Vanden Houten noted that when the Fed does cut the "risk is growing" that the Fed's next interest rate cut is a 50 basis point move rather than 25 basis points. Solar stocks rallied in afternoon trade after the Senate voted to remove an excise tax on wind and solar projects from President Trump's $3.3 trillion tax bill. Shares of Sunrun (RUN) surged roughly 10% in afternoon trading. Enphase Energy (ENPH), one of the worst-performing stocks this year, climbed about 4%, while SolarEdge Technologies (SEDG) gained approximately 7% shortly after the news broke. Senate leaders pushed the bill closer to passage in a highly anticipated vote on Tuesday. As Yahoo Finance's Ben Werschkul reported, the measure passed with a 50-50 split in the Senate, with three Republican defections. Vice President JD Vance cast the tie-breaking vote in favor of the bill, which marked a significant win for the solar and wind energy sectors. Here's why: The bill originally included a new tax on wind and solar projects using a certain amount of parts made in China. Some US manufacturers supported this to reduce dependence on China. But renewable energy developers warned it would raise costs for their projects because many still rely on Chinese parts. To note, the bill still plans to gradually end subsidies for new wind and solar projects starting after 2027, despite some Republican efforts to delay that cutoff. Circle (CRCL) has formally applied with the Office of the Comptroller of the Currency (OCC) to get a national trust bank charter, the company said Tuesday. Shares of the stablecoin issuer gained 2.8% in afternoon trading after opening in the red. The stock is up 500% since its June 5 IPO. Yahoo Finance's David Hollerith reports: Read more here. 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 ( or OpenAI ( 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 ( '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. Earnings: Constellation Brands (STZ) Economic data: JOLTS Job Openings (May); ISM manufacturing (June); Construction spending (May); Dallas Fed services activity; S&P Global US manufacturing PMI (June) Here are some of the biggest stories you may have missed overnight and early this morning: Trump repeats Tesla subsidy threat after Musk bashes megabill Senate kills ban on AI regulation as it pulls all-nighter on tax bill Trump pulls back from big trade deals as deadline looms How Boeing, Walmart, and Tesla tell the stock story of 2025 6 questions for US stock investors as 2025's second half begins Homes are taking longer to sell in US market that once flourished Tesla sales drop over 60% in Sweden and Denmark Chinese AI chipmakers plan $1.7B IPOs thanks to US curbs The Dow Jones Industrial Average (^DJI) was the lone major index in the green on Tuesday led by several healthcare stocks catching bids. UnitedHealthcare (UNH) stock, which had been the worst performer in the Dow this year and down more than 35% to start 2025, rose about 4.5% on Tuesday. Tuesday's market action proved to be positive for a slew of laggards through the first half of this year. The small-cap Russell 2000 Index (^RUT), which had underperformed all three major averages through the first six months of this year, rose more than 1% on Tuesday. Below is a look at how every Dow component performed on Tuesday. Stocks staged a historic comeback from their April lows, finishing the first half of the year on a high note with the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) securing back-to-back all-time records. A large part of the market's gains has hinged on easing geopolitical tensions and tariff-related deescalations, including the emergence of the so-called TACO trade, an acronym for "Trump Always Chickens Out." The phrase captures a belief among some investors that the president often talks tough on tariffs but rarely follows through. That assumption has helped fuel a tailwind for markets in recent months as traders increasingly bet on last-minute policy pivots. Trade deal frameworks with China and the UK are reportedly now on the table ahead of Trump's self-imposed July 9 deadline. This has led investors to price in a "Goldilocks scenario" for stocks, with sustained earnings growth, little effects from tariffs, and rate cuts from the Federal Reserve. But Wall Street pros are signaling caution as they assess the path forward, which still includes many unknowns. "Just as Goldilocks awoke from her sleep to confront three bears, there are several areas where this optimism is likely to be challenged," JPMorgan's economics and policy team, led by Bruce Kasman, wrote in a recent client note. Kasman cautioned investors not to "get carried away by inflation momentum," warning that tariffs are still set to rise despite ongoing trade negotiations. This will add pressure to a US economy already grappling with softer consumer demand and signs of stalling global factory activity. "The economy is entering the second half of the year on wobbly footing," Comerica Bank chief economist Bill Adams added. Read more here. The latest Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday showed 7.76 million jobs were open at the end of the May, the highest level since November 2024. After several signs of slowing in the labor market have emerged over the past months in areas like continuing unemployment claims and slowing hiring, Tuesday's data reminds us that there's a bit of something for everyone in the current economic data being analyzed as investors debate when the Federal Reserve will cut interest rates next. Tuesday's data suggested the labor market remained "healthy" in May, Capital Economics North America economist Alexandra Brown wrote in a note to clients on Tuesday. Oxford Economics lead US economist Nancy Vanden Houten wrote in a note that there was "nothing" in the May JOLTS report to shake the Fed's patient approach. But Vanden Houten noted that when the Fed does cut the "risk is growing" that the Fed's next interest rate cut is a 50 basis point move rather than 25 basis points. Solar stocks rallied in afternoon trade after the Senate voted to remove an excise tax on wind and solar projects from President Trump's $3.3 trillion tax bill. Shares of Sunrun (RUN) surged roughly 10% in afternoon trading. Enphase Energy (ENPH), one of the worst-performing stocks this year, climbed about 4%, while SolarEdge Technologies (SEDG) gained approximately 7% shortly after the news broke. Senate leaders pushed the bill closer to passage in a highly anticipated vote on Tuesday. As Yahoo Finance's Ben Werschkul reported, the measure passed with a 50-50 split in the Senate, with three Republican defections. Vice President JD Vance cast the tie-breaking vote in favor of the bill, which marked a significant win for the solar and wind energy sectors. Here's why: The bill originally included a new tax on wind and solar projects using a certain amount of parts made in China. Some US manufacturers supported this to reduce dependence on China. But renewable energy developers warned it would raise costs for their projects because many still rely on Chinese parts. To note, the bill still plans to gradually end subsidies for new wind and solar projects starting after 2027, despite some Republican efforts to delay that cutoff. Circle (CRCL) has formally applied with the Office of the Comptroller of the Currency (OCC) to get a national trust bank charter, the company said Tuesday. Shares of the stablecoin issuer gained 2.8% in afternoon trading after opening in the red. The stock is up 500% since its June 5 IPO. Yahoo Finance's David Hollerith reports: Read more here. 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 ( or OpenAI ( 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 ( '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. Earnings: Constellation Brands (STZ) Economic data: JOLTS Job Openings (May); ISM manufacturing (June); Construction spending (May); Dallas Fed services activity; S&P Global US manufacturing PMI (June) Here are some of the biggest stories you may have missed overnight and early this morning: Trump repeats Tesla subsidy threat after Musk bashes megabill Senate kills ban on AI regulation as it pulls all-nighter on tax bill Trump pulls back from big trade deals as deadline looms How Boeing, Walmart, and Tesla tell the stock story of 2025 6 questions for US stock investors as 2025's second half begins Homes are taking longer to sell in US market that once flourished Tesla sales drop over 60% in Sweden and Denmark Chinese AI chipmakers plan $1.7B IPOs thanks to US curbs Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22 minutes ago
- Yahoo
Tesla Stock in Tailspin After Error-Plagued Robotaxi Debut
Things are veering way off the road for Tesla. In the wake of the long-awaited Robotaxi rollout in Austin, Tesla stock saw an initial bump — but those gains weren't able to withstand the ample bad press the autonomous cabs have gotten in the few days they've trawled Texas streets. On Tuesday, the botched Robotaxi launch led Tesla stock to drop more than four percent and nearly $15 in a single day. That falloff came after videos emerged showing the driverless cabs — which also, embarrassingly, still have human "safety monitors" riding shotgun — breaking traffic laws and driving erratically. One of the most viral Robotaxi freakouts shows one of the not-exactly-self-driving cabs braking repeatedly when driving near police cars, blowing through an intersection, and swerving into oncoming traffic — all within the brief 20 minutes that the ride was filmed by its backseat passenger. In another unsettling Robotaxi video, the Model Y's self-driving steering wheel jerks back and forth while plowing through another intersection before careening across a double-yellow line. The videos weren't only seen by internet critics, but also by the National Highway Traffic Safety Administration, which confirmed to Bloomberg earlier this week that it was aware of the clips and looking into whatever the heck is going on in them. In an investor note shared with MarketWatch, erstwhile Tesla bull Tom Narayan of RBC Capital Markets pointed out that the inclusion of human safety monitors and remote drivers in the Robotaxi rollout came as a rude surprise to stockholders banking on a revolutionary demo. "Robotaxis are critical to the Tesla investment case," Narayan wrote. If the company can prove to stockholders (and the rest of the world) that its autonomous driving capabilities are legit, the analyst noted, the company would edge out its competition both in the driverless cab sphere and in EV world. With the way things are going for Tesla, however, that seems like a big "if." "Only time will tell if this will work," the analyst concluded. And even if you look past all the drama, it's clear that Tesla's competitor Waymo is blowing it out of the water as it expands service to city after city. More on Tesla trouble: Cybertruck Burned So Severely That Its Driver's Bones Disintegrated Sign in to access your portfolio
Yahoo
22 minutes ago
- Yahoo
Government Alarmed by Videos of Tesla Robotaxis Immediately Breaking Road Laws
Tesla is already in hot water over its Robotaxi rollout in Austin. As Bloomberg reports, the National Highway Traffic Safety Administration (NHTSA) contacted Tesla just a single day after its Robotaxi launch over apparent traffic violations captured on video and posted to social media. Since Sunday, the Elon Musk-owned electric carmaker has been offering autonomous rides, albeit with a human safety monitor, to a select few individuals willing to pay for the novelty. As videos taken in the wake of the launch show, the Robotaxis are no better than Google's self-driving Waymo cabs — and likely markedly worse — which also roam the streets of Austin. One such video, filmed by a backseat passenger, shows the steering wheel of a Robotaxi begin jerking left and right as its navigation system snaps between two different routes. Though the Tesla eventually corrects itself, it then begins to drift over the double yellow line — though luckily, there was no oncoming traffic. In perhaps the most viral of the incidents, one of the autonomous cabs is seen braking repeatedly upon driving past police cars — a maneuver more reminiscent of stoned teen drivers freaking out about a joint in their glove box than the vanguard of the tech industry's transportation solutions. Though this new government interest in Robotaxis falls short of a formal investigation, it's still bad news for Tesla, which is the subject of a growing list of NHTSA probes — and its janky and dangerous autonomous driving tech is of particular concern to the agency. "NHTSA is aware of the referenced incidents and is in contact with the manufacturer to gather additional information," the agency said in a statement emailed to TechCrunch. "Following an assessment of those reports and other relevant information, NHTSA will take any necessary actions to protect road safety." "Under US law, NHTSA does not pre-approve new technologies or vehicle systems," the statement continued. "Rather, manufacturers certify that each vehicle meets NHTSA's rigorous safety standards, and the agency investigates incidents involving potential safety defects." Last month, Electrek reported that the agency had grown concerned that Tesla's problematic "Full Self-Driving" feature — which the company was forced to rename to "Intelligent Assisted Driving" in China because the tech doesn't allow for full autonomy — would be used for the Robotaxis. Tesla was, apparently, able to assuage those concerns ahead of the launch — but that band-aid doesn't seem to be sticking now that the not-so-self-driving taxis are gumming up the roads of Austin. And the elephant in the room: until last month, Musk was best buddies with Donald Trump, making it likely he could slide out of federal accountability for mismanaged rollouts. Since that relationship imploded spectacularly, though, the reverse dynamic is likely now true: loyal Trump regulators could instead have it out for Tesla. More on Robotaxis: Disturbing Test Shows What Happens When Tesla Robotaxi Sees a Child Mannequin Pop Out From Behind a School Bus
