Major indexes on the New York Stock Exchange are showing weakness due to uncertainty surrounding trade negotiations between the United States and other major countries, as well as the budget proposal from the Trump administration. Tesla shares have plunged nearly 7% as conflicts arose between U.S. President Donald Trump and Tesla Chief Executive Officer Elon Musk over the budget plan.
As of 9:30 a.m. Eastern Time on the 1st, the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) is trading at 40,037.97, down 56.80 points (0.13%) from the previous session. The large-cap-focused Standard & Poor's (S&P) 500 index has dropped 17.25 points (0.28%) to 6,187.70, and the tech-heavy Nasdaq index has recorded a decline of 80.92 points (0.40%) to 20,288.81.
Investors are closely monitoring the possibility of a congressional vote on the Trump administration's tax cut and the progress of trade negotiations between the United States and other major countries.
President Trump plans to pass the tax cut proposal before the 4th (U.S. Independence Day) and draw results from major country trade negotiations. U.S. Treasury Minister Scott Bessent noted in an interview with Fox News that "we hope the bill will be signed on Friday and will discuss trade negotiations next week."
Market participants are paying close attention to remarks by Jerome Powell, Chair of the Federal Reserve (Fed). Powell is attending the Sintra Forum hosted by the European Central Bank (ECB) in Portugal, discussing recent economic issues with central bank leaders starting from 9:30 a.m.
Most sectors are showing weakness.
Consumer goods (-1.02%), energy (-0.55%), finance (-0.17%), health (-0.19%), industrials (-0.27%), technology (-0.22%), communication services (-0.34%), and utilities (-0.15%) are all in decline compared to the previous session.
By stock, Tesla shares have plummeted 6.81% as the conflict between Musk and President Trump reignites.
President Trump said regarding his tax cut proposal that Musk, who criticizes it, would "probably have to close his business and return to South Africa" if there are no subsidies. He also added, "Should we have the Department of Efficiency (DOGE) look into this closely? We could save a huge amount of money."
AeroVironment fell 7.04% as it pushes for a $750 million capital increase and a $600 million convertible bond issuance. Hasbro, which received an investment recommendation of "buy" from Goldman Sachs, rose 1.71%.
The Euro Stoxx 50 Index is down 0.51%, the German DAX Index is down 0.83%, the UK's FTSE Index is down 0.17%, and France's CAC 40 Index is down 0.54%.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) increased by 0.32 points (1.91%) to 17.05.