Yesterday was quite the crazy day, with market leaders tumbling, while stocks that had been lagging saw big gains. As a result, the Dow Jones Industrial Average surged nearly 1%, while the market-cap weighted S&P 500 lost 0.11%. Most stocks were actually higher on the day, which really shows that it was the mega-cap companies that were down. Like Tesla (TSLA) , which lost 5% as the breakup fight between President Trump and Elon Musk continued, with Trump threatening to deport the South African and end subsidies to Musk-controlled companies.
🚨 *TRUMP, ASKED ABOUT DEPORTING MUSK, SAYS HAVE TO TAKE A LOOK
— *Walter Bloomberg (@DeItaone) July 1, 2025
BREAKING: Trump implies DOGE may look at Elon Musk’s subsidies: pic.twitter.com/FE9lXj0Ebq
— unusual_whales (@unusual_whales) July 1, 2025
Economy
The so-called Big Beautiful Tax Bill passed the Senate yesterday by the slimmest of margins. Senators were deadlocked on it, forcing V.P. JD Vance to cast the tie-breaking vote. The Senate’s version of the bill now goes back to the House for approval before it can be passed on to the President. Republican hard-liners are not happy with the Senate’s version, so there is some question as to whether it will be approved by the self-imposed July 4th deadline.
Tariffs are also set to go into effect on July 9th. The President confirmed this yesterday in response to a question from a member of the press while aboard Air Force One. Thus far, the U.S. has been unable to reach a deal with Japan. A deal with India appears to be close.
Yesterday, the Institute for Supply Management released its May survey of purchasing managers. The headline number came in at 49, which was an improvement over the May number, but continues to suggest that the economy is contracting.
Jobs are also contracting. ADP reported this morning that private employers shed 33,000 jobs in June. Losses were in high paying areas like professional and business services as well as education and health services. There were gains in leisure and hospitality as well as manufacturing. It wasn’t so much layoffs causing the decline. It was a reluctance to replace departing workers.
Premarket Trading
Where does that leave us for today? Lower. It appears to be a risk-off kind of day.
Futures had been stronger overnight, but faded following the ADP report mentioned above.
Nvidia (NVDA) is adding to yesterdays losses. In premarket trading, shares are down around 1% on no news of note.
Related: Federal Reserve chair sends strong message on July interest rate cut