Futures dip after record run as investors focus on Trumps tax bill
Tesla slips as Denmark, Sweden sales drop; Trump-Musk feud
Circle up after applying for US trust bank license
By Sruthi Shankar and Nikhil Sharma
July 1 - U.S. stock futures dipped on Tuesday, following a record run for Wall Street indexes, as investors monitored U.S. trade talks and a Senate voting marathon over President Donald Trump's tax and spending bill.
The S&P 500 and the Nasdaq Composite notched all-time closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment.
U.S. senators were still voting on Tuesday on a potentially long list of amendments to Trump's bill that is expected to bring a $3.3 trillion hit to the nation's debt pile.
The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income Americans.
Meanwhile, Trump expressed frustration with U.S.-Japan trade negotiations and Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches despite good-faith negotiations.
Tesla's shares dropped 4.1% premarket after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received.
Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June.
"There's a clear mismatch between how markets are positioned and the risks that remain on the table," Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said in a note.
"Trade tensions, geopolitical uncertainty, the ballooning U.S. debt burden, the possibility that the Fed might not be able to cut rates, signs of economic slowdown, and even a potential re-acceleration in inflation — none of these risks have disappeared."
At 06:52 a.m. ET , S&P 500 E-minis were down 13.75 points, or 0.22%, Nasdaq 100 E-minis were down 61 points, or 0.27%, and Dow E-minis were down 56 points, or 0.13%.
The S&P 500 and Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going.
The blue-chip Dow on Monday closed 2.2% below its all-time high touched in December.
S&P Global and ISM's June manufacturing activity surveys, May job openings data as well as Fed Chair Jerome Powell's comments at a European Central Bank forum later in the day will be parsed for hints on U.S. monetary policy outlook.
Soft economic data in recent weeks and expectations of Trump picking a dovish central bank head have supported bets of interest rate cuts from the Fed this year and next.
Ahead of Thursday's crucial payrolls data, money markets were pricing in 68 basis points of rate cuts by the end of 2025 and about 135 bps of cuts by October next year, per LSEG data.
Among other stocks, stablecoin firm Circle edged up 1.1% on news it was applying to create a national trust bank in the U.S.
This article was generated from an automated news agency feed without modifications to text.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
30 minutes ago
- Indian Express
What India is hoping for on US deal: Up to 20% tariff differential vis-a-vis China rate
AS THE India–US trade talks enter their final decisive phase in Washington DC, policy makers here hope that three implicit assumptions of New Delhi materialise, the most important being a steady differential between the US tariffs on China and India. Despite US President Donald Trump's vacillations on trade policy, the government is confident that the administration in Washington DC will maintain a differential of 10-20 per cent in tariffs between China and countries such as India. 'The deal needs to be clinched precisely for this gap to be maintained,' an official said. The official said the US is driving hard for market access in politically sensitive sectors such as agriculture and dairy, and there are strong red lines here. But a section of officials also reckon it is important to ensure a good differential between the US tariffs on India and China, for which a deal is vital. 'The question is whether the Indian negotiators would have to settle for a limited early- harvest type of deal, or would they have to turn away from the negotiations for now, let the July 9 deadline pass, and then rebuild efforts to bridge the gaps. A full-scale deal looks out of the question for now,' another official with experience of trade negotiations said. Second, there is now a realisation that cutting tariffs across segments, especially intermediate goods, might be a net positive for India. New Delhi did back out at the last minute from signing the Regional Comprehensive Economic Partnership (a trade deal among Asia-Pacific countries including China) given the sensitivities of agri livelihoods. But there is greater receptiveness now within India's policy circles to cut tariffs on some industrial goods, including automobiles, and some agri products of interest to the Americans such as apples, almonds, walnuts, avocados and spirits. There is also more openness on the GM (genetically modified) foods issue too. Also, India has headroom to import more from the US, especially in three sectors – crude, defence equipment and nuclear, to manage Trump's constant references to the trade gap. Third, there is a growing view that the baseline tariffs are here to stay. So, effectively, what India would be negotiating for is a rate between 10 per cent and 26 per cent. Prior to Trump's taking over in January, the effective US duty on India was just 4 per cent, and there were virtually no non-tariff barriers. What is more consequential today is the effective duty on Chinese products on a landed basis across US ports in commodity categories where Indian producers are reasonably competitive. The net tariff differential with India, and how that curve continues to move, is of particular interest here, given the belief that Washington DC would ensure a reasonable tariff differential between China and India. Officials said a 20 per cent differential is expected to tide over some of India's structural downsides — infrastructural bottlenecks, logistics woes, high interest cost, the cost of doing business, corruption, etc. On the face of it, Trump's announcement of 55 per cent tariffs on China on June 14 could theoretically mean a nearly 30 percentage point difference with respect to the 26 per cent on India. But there are a few caveats: for the Trump administration, whose tariff proposals generally have had a half life of less than 10 days, it is not clear how long the new tariffs announced on China after the latest round of talks between the two sides in London would last. Also, in the talks earlier in Geneva in May that led to a temporary truce, US tariffs on Chinese products were brought down to 30 per cent from 145 per cent and Beijing slashed levies on US imports to 10 per cent, while promising to lift barriers on critical mineral exports. While in a social media post, Trump claimed the US would impose tariffs on Chinese goods of 55 per cent, the catch here is that the figure included tariffs put in place during Trump's first term. So, while the 55 per cent tariff on imported Chinese goods might seem to retain a reasonable differential over the tariffs imposed by the US on India, this figure of 55 per cent crucially, includes a 25 per cent pre-existing tariff that was imposed by Trump in his first term, and that the Biden administration persisted with. The remaining components of this 55 per cent tariff are the 10 per cent baseline 'reciprocal' tariff and the 20 per cent tariff imposed initially by the Trump administration on China citing fentanyl trafficking. So, the real tariff calculation on China should ideally exclude the 25 per cent pre-existing tariff, which pretty much negates the impression of a big tariff difference with India; at least for now. The upside for India is that the trade deal under discussion with the US, which New Delhi is working to clinch before July 19, could see a further drop in tariffs from the current 26 per cent to closer to 10 per cent. The problem, though, is that China's leverage in its trade discussions with the US could mean a further downward revision in tariffs from the effective 30 per cent that was arrived upon at the Geneva talks. Though the details of the deal were still unclear, analysts predicted China seems to have gained the upper-hand after China's rare earth restrictions prompted US carmakers, including Ford Motor and Chrysler, to cut production. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More Anil Sasi is National Business Editor with the Indian Express and writes on business and finance issues. He has worked with The Hindu Business Line and Business Standard and is an alumnus of Delhi University. ... Read More
Hindustan Times
an hour ago
- Hindustan Times
As USAID stops foreign aid, Marco Rubio says future US assistance will be limited
The US Agency for International Development will on Tuesday officially stop implementing foreign aid, Secretary of State Marco Rubio said, adding that America's assistance in the future will be targeted and limited. Marco Rubio said the US was abandoning what he called a charity-based model and would focus on empowering countries to grow sustainably.(File/AFP) In a statement marking the transfer of USAID to the State Department as part of President Donald Trump's unprecedented push to shrink the federal government, Rubio said the US was abandoning what he called a charity-based model and would focus on empowering countries to grow sustainably. "We will favor those nations that have demonstrated both the ability and willingness to help themselves and will target our resources to areas where they can have a multiplier effect and catalyze durable private sector, including American companies, and global investment," the top US diplomat wrote. This new model, he wrote, would prioritize trade over aid and investment over assistance, adding it would put Washington in a stronger place to counter Beijing. The Trump administration has frozen and then cut back billions of dollars of foreign aid since taking office, saying it wants to ensure US taxpayer money goes only to programs that are aligned with Trump's "America First" policies. The cutbacks have effectively shut down USAID, leading to the firing of thousands of its employees and contractors. That jeopardized the delivery of life-saving food and medical aid and has thrown global humanitarian relief operations into chaos. According to research published in The Lancet medical journal, deep funding cuts to USAID and its dismantling could result in more than 14 million additional deaths by 2030. Human rights experts and advocates have warned against the cuts. USAID funding has had a crucial role in improving global health, primarily directed toward low- and middle-income countries, particularly African nations, according to the study. Reuters reported on Tuesday that the administration canceled a major contract to supply emergency kits for rape survivors in eastern Democratic Republic of the Congo as violence surged there this year, leaving thousands without access to life-saving medication, the United Nations and aid groups said. INVESTMENT AND TRADE DEALS USAID was established in 1961 by Democratic President John F. Kennedy at the height of the Cold War with the aim of better coordinating foreign assistance, already a key platform of US foreign policy in countering Soviet influence. Washington has been the world's largest humanitarian aid donor, amounting to at least 38% of all contributions recorded by the United Nations. It disbursed $61 billion in foreign assistance last year, just over half of that via USAID, according to government data. Among the programs affected by the cuts is the President's Emergency Plan for AIDS Relief (PEPFAR), the world's leading HIV/AIDS initiative. Sub-Saharan Africa remains the epicenter of the AIDS pandemic. Trump's cuts have restricted the availability of drugs that millions of Africans have taken to prevent infection - particularly vulnerable communities such as gay men and sex workers - as aid groups and public health systems in Africa strove to roll back the disease. Trump has said the US pays disproportionately for foreign aid and he wants other countries to shoulder more of the burden. A senior State Department official briefing reporters on the condition of anonymity described the USAID model as "failed engagement" that did not reduce the dependency of foreign countries on the United States, and he said other nations will need to step up. "We want to see more investment from our partners, co-investment," the official said. "We want to see trade deals, compacts, agreements to work together on stuff." The shuttering of USAID drew a rare rebuke from former presidents George Bush and Barack Obama who joined a closed video conference event with the USAID community, the Associated Press reported on Monday. "Gutting USAID is a travesty and it's a tragedy. Because it's some of the most important work happening anywhere in the world," Obama was quoted as saying.
India Today
an hour ago
- India Today
It is everyone's bill: With Senate win, Trump promises golden age of America
It's big. It's beautiful. And, according to Donald Trump, it's for his signature style, US President Donald Trump announced that the US Senate has passed what he calls the "ONE, BIG, BEAUTIFUL BILL" — a sweeping piece of legislation that promises tax cuts, higher wages, stronger borders, and even a "Golden Age of America.""This is no longer a 'House Bill' or a 'Senate Bill'," Trump said on Truth Social. "It is everyone's Bill."advertisement The legislation appears to be a major part of Trump's post-reelection agenda, promising to deliver "Permanently Lower Taxes, Higher Wages and Take Home Pay, Secure Borders, and a Stronger and More Powerful Military." In a pitch tailor-made for the July 4th fireworks, Trump called on House Republicans to stop grandstanding and unite behind the measure. "We can have all of this right now, but only if the House GOP UNITES, ignores its occasional 'GRANDSTANDERS' (You know who you are!), and does the right thing," he the red-white-and-blue rhetoric, the bill's journey isn't over yet. It must still pass the Republican-controlled House. Trump didn't hold back in urging swift passage, reminding lawmakers of the looming holiday: 'Let's keep it going, and be done before you and your family go on a July 4th American People need and deserve it. They sent us here to, GET IT DONE!"advertisement"Our Country is going to explode with Massive Growth... setting us on course for enormous Prosperity in the new and wonderful Golden Age of America," Trump 'BIG BEAUTIFUL' TAX, SPENDING BILL CLEARS SENATEEarlier, Senate Republicans narrowly passed Trump's major bill, which includes big tax cuts and major spending changes. The vote came after an all-night session filled with tension, pushback from Democrats, and even some resistance within the outcome capped an unusually tense weekend of work at the Capitol, the president's signature legislative priority teetering on the edge of approval or collapse. In the end that tally was 50-50, with Vice President JD Vance casting the tie-breaking Republican senators -- Thom Tillis of North Carolina, Susan Collins of Maine and Rand Paul of Kentucky -- joined all Democrats in voting against it."In the end we got the job done," Senate Majority Leader John Thune of South Dakota said afterward.- EndsWith inputs from Associated PressTune InMust Watch
