01 Jul 2025
US stock futures show little movement as Trump’s tax-cut bill emerges

US stock futures displayed minimal movement Tuesday evening, following a mixed close on Wall Street where technology stocks suffered the most significant losses. This subdued trading activity occurred in the shadow of the Senate's narrow passage of President Trump's tax-cut bill, a legislation projected to dramatically increase the national debt by an estimated $3.3 trillion. The bill's journey to potential enactment now rests with the House of Representatives. President Trump aims for a signature by the July 4th holiday, a timeline that adds pressure to the already tense political climate.
Specifically, S&P 500 futures edged up 0.1% to 6,253.75 points, while Nasdaq 100 futures also saw a modest 0.1% gain, reaching 22,714.50 points by 8 PM ET. Dow Jones futures mirrored this slight upward trend, rising 0.1% to 44,829.0 points. This cautious optimism, however, is tempered by the looming July 9th tariff deadline, a date when significant reciprocal tariffs are scheduled to be reinstated unless alternative trade agreements are reached. The muted market response reflects the considerable uncertainty surrounding these impending tariffs.
The market's hesitancy is further fueled by ongoing concerns about the Federal Reserve's monetary policy. Fed Chair Jerome Powell's recent comments on interest rates have exacerbated the already strained relationship with President Trump, who continues to advocate for more aggressive rate cuts to stimulate economic growth. This public disagreement between the executive and the central bank adds another layer of complexity to the economic outlook, contributing to the general air of apprehension.
Monday's regular trading session showcased this market volatility. The S&P 500 experienced a slight 0.1% dip, while the NASDAQ Composite fell more sharply, declining by 0.8%. Conversely, the Dow Jones Industrial Average bucked the trend, posting a 0.9% gain. Tesla's stock performance stood out, plummeting 5.3% following a renewed clash between President Trump and CEO Elon Musk.
Trump's criticisms focused on Tesla's alleged excessive reliance on government subsidies, prompting calls for a review of the company's federal support. This public feud, largely stemming from Musk's past criticisms of Trump's economic policies, injected significant uncertainty into Tesla's stock value and highlighted the potential impact of political disagreements on individual companies.
Adding to the complexity of the situation is the ongoing US-China trade negotiations. While a recently announced trade agreement provided some relief, Canada's last-minute withdrawal of its proposed digital services tax created further uncertainty. The upcoming July 9th tariff deadline remains a significant concern, with President Trump stating his intention to proceed with the tariffs unless substantial concessions are made.
He explicitly ruled out any extension of the deadline, opting instead to notify affected countries via formal letters outlining the impending tariffs. Reports suggest that India might be considering easing certain trade restrictions to mitigate the potential impact of these upcoming tariffs. The overall situation remains fluid and highly dependent on the outcome of ongoing trade negotiations and the political climate in Washington. The interplay between trade policy, monetary policy, and political infighting creates a volatile market environment, making accurate predictions difficult.