US stocks end mixed, with Dow up after Senate passes tax bill. Trump sinks Tesla stock
U.S. stocks closed mixed, with the blue-chip Dow adding 400 points after the Senate passed by a slim margin President Donald Trump's tax bill.
The mega tax bill passed with Vice President JD Vance casting the tie-breaking vote. The bill now goes to the House for final approval, but its fate isn't yet assured. Many representatives are still voicing opposition to cuts in Medicaid, food assistance and increases to the deficit. Congress is racing to get the bill approved and to the president's desk by July 4.
The Dow added 0.91%, or 400.17 points, to 44,494.94; the broad S&P 500 dipped 0.11%, or 6.94 points, to 6,198.01 and the tech-heavy Nasdaq fell 0.82%, or 166.85 points, to 20,202.89. The benchmark 10-year Treasury yield inched up to 4.248% after stronger-than-expected economic data decreased expectations for a rate cut any time soon.
The tax bill also continues to be a point of contention between Tesla Chief Executive Elon Musk and Trump. In response to constant criticism from Musk about the tax bill's largesse, Trump said in a social media post the Department of Government Efficiency ought to look into the subsidies the electric vehicle maker has received. Trump also threatened to look into deporting Musk. Tesla's shares slumped more than 5%.
Stocks also were reined in by strong economic data. The Institute for Supply Management (ISM) said its manufacturing PMI nudged up to 49.0 last month from a six-month low of 48.5 in May, slightly above economists' forecast of 48.8.
Job openings in May unexpectedly rose, which could keep the Federal Reserve from cutting interest rates. U.S. employers posted 7.8 million vacancies up from 7.4 million in April and above economists' forecast for a slight decrease to 7.3 million.
With the economy and job market still showing signs of strength, Fed Chair Jerome Powell may feel more confident in maintaining his wait-and-see approach to rate moves. Powell has said he doesn't want to cut rates until he can see the effects of Trump's tariffs on the economy.
Trump has repeatedly berated Powell for not lowering rates immediately. Lower rates cut the cost of borrowing, which encourages more spending from companies and individuals.
Corporate news
- Progress Software's second-quarter sales missed analysts' forecasts but the company's earnings per share topped. Shares dropped 13%.
- AeroVironment plans to sell $750 million in common stock, as well as $600 million in convertible senior notes due 2030, to repay indebtedness. Shares slid 11.42%.
- Circle Internet Group submitted a bank charter application to the Office of the Comptroller of the Currency, according to Reuters. Shares rose 6.71%.
- Tesla shares fell after heated words between Musk and Trump. Separately, Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June. Shares tumbled 5.34%.
- Wolfspeed filed for a Chapter 11 bankruptcy to restructure its debt. Shares soared 98%.
- Shares of casino operators like Wynn and Las Vegas Sands rose after gambling mecca Macau reported a rise in June gambling revenue. Wynn added 8.85% and Las Vegas Sands added 8.92%.
Cryptocurrency
American Bitcoin, a company whose backers include Trump’s son Eric Trump, raised $220 million to buy Bitcoin and digital asset mining equipment, according to a regulatory filing by American Bitcoin’s majority owner Hut 8 Corp. Some of the equity, worth about $10 million, was sold for Bitcoin rather than dollars, it said.
Bitcoin was last down 1.56% at $105,495.60.
(This story was updated with new information.)
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.