US stock market futures edge higher as tech sector cools, Dow gains 93 points, investors eye Trump tax bill and key jobs data
US Stock futures inch higher after tech-led slump to start second half of 2025- Stock futures ticked up early Wednesday morning as investors cautiously stepped back into the market after a rough start to the second half of 2025. The tech sector, which had fueled much of the recent rally, took a backseat on Tuesday, prompting a shift in investor sentiment toward more defensive plays. Wall Street started the second half of 2025 with a mixed tone. While the Dow Jones Industrial Average surged higher, the S&P 500 and Nasdaq Composite took a breather after recent gains, mainly dragged by weakness in tech stocks.
Dow Jones: ▲ +0.9% to close at 44,494.94 , gaining around +400 points
▲ to close at , gaining around S&P 500: ▼ –0.1% to close near 6,198
▼ to close near Nasdaq Composite: ▼ –0.8%, reflecting tech sector underperformance The market action signaled a sector rotation, with investors trimming positions in big tech and reallocating funds to traditional industries such as casinos, autos, and consumer staples. Several non-tech names stood out as top performers, benefiting from positive sector-specific news and bullish investor sentiment: Las Vegas Sands (LVS): ▲ +8.9% – Strong June gaming revenues from Macau boosted confidence in the casino sector.
▲ – Strong June gaming revenues from Macau boosted confidence in the casino sector. Wynn Resorts (WYNN): ▲ +8.8% – Followed LVS higher on Macau-driven momentum.
▲ – Followed LVS higher on Macau-driven momentum. General Motors (GM): ▲ +5.7% – Investors favored legacy automakers amid Tesla weakness.
▲ – Investors favored legacy automakers amid Tesla weakness. Ford (F): ▲ +4.6% – Continued rally in auto stocks despite EV sector cooling off.
▲ – Continued rally in auto stocks despite EV sector cooling off. Target (TGT): ▲ +5.3%, closing at $103.85 – Outperformed retail peers with unusually high trading volume. Tech stocks took a hit as investors reacted to geopolitical headlines, fiscal policy shifts, and valuation concerns:
Tesla (TSLA): ▼ –5.3% , closing at $300.71 – Sixth straight loss, down ~38% from its 52-week high. The stock was pressured by political controversy and weak delivery expectations.
▼ , closing at – Sixth straight loss, down ~38% from its 52-week high. The stock was pressured by political controversy and weak delivery expectations. Advanced Micro Devices (AMD): ▼ –4.1% – Part of the broader tech selloff.
▼ – Part of the broader tech selloff. Palantir (PLTR): ▼ –4.1% – Profit-taking weighed on recent gains.
▼ – Profit-taking weighed on recent gains. DexCom (DXCM): ▼ –4.3% – Healthcare tech names followed the Nasdaq lower.
▼ – Healthcare tech names followed the Nasdaq lower. Coinbase (COIN): ▼ –4.3% – Crypto-linked stocks declined as Bitcoin dipped below $60,000.
▼ – Crypto-linked stocks declined as Bitcoin dipped below $60,000. Howmet Aerospace (HWM): ▼ –5.3% – Profit-booking after a strong June rally.
▼ – Profit-booking after a strong June rally. Williams Companies (WMB): ▼ –6.5% – Slipped amid volatility in energy and utilities.
Stock futures pointed slightly higher after Tuesday's tech-led pullback. As of early Wednesday:
Dow Jones Industrial Average futures gained 93 points, up about 0.2%
S&P 500 futures rose 0.1%
Nasdaq 100 futures hovered near the flatline This modest uptick came after the Dow jumped 400 points on Monday, but the S&P 500 slipped by 0.1% and the Nasdaq Composite fell 0.8% as traders rotated out of high-growth tech names.
The tech sector — especially giants like Nvidia, Palantir, and Advanced Micro Devices (AMD) — led Tuesday's slide. The information technology sector within the S&P 500 dropped over 1%, matching the losses in communications services. This decline marked a notable pause in the momentum that had powered tech's resurgence in Q2. Investors turned instead to defensive sectors, with health care and materials seeing solid gains. Big names like Amgen, Johnson & Johnson, and UnitedHealth helped push the 30-stock Dow higher, offsetting losses in tech-heavy indexes. Several key forces influenced today's trading activity: Sector rotation: Investors pulled out of tech and rotated into industrials, autos, consumer staples, and casinos—industries with more predictable earnings and less valuation risk.
Investors pulled out of tech and rotated into industrials, autos, consumer staples, and casinos—industries with more predictable earnings and less valuation risk. Political headlines: Tesla came under pressure following reports linking Elon Musk to political meetings with President Trump, sparking concerns over public perception and future regulations.
Tesla came under pressure following reports linking Elon Musk to political meetings with President Trump, sparking concerns over public perception and future regulations. Energy policy shift: Solar and renewable energy stocks dropped after the U.S. Senate removed clean energy tax credits from the budget, weakening sentiment in the green energy space.
Solar and renewable energy stocks dropped after the U.S. Senate removed clean energy tax credits from the budget, weakening sentiment in the green energy space. Interest rate concerns: Strong June jobs data pushed Treasury yields higher, reigniting fears that the Federal Reserve might delay expected rate cuts.
Markets are also closely watching developments in Washington. On Tuesday, President Donald Trump's tax-and-spending bill narrowly passed the Senate. The legislation now heads back to the House, where some GOP holdouts remain skeptical.
Jose Rasco, Chief Investment Officer at HSBC Global Private Banking and Wealth Management Americas, told CNBC's Closing Bell: Overtime , 'We expect to see more volatility in fixed income, even once they get the bill passed, whatever that looks like. That's going to bleed over into the equity markets.' Still, Rasco expressed optimism for the longer term: 'Once these things get resolved and once the [Federal Reserve] gets back in gear, there's a lot of upside here.'
Yes — another key issue on investors' radar is trade policy. President Trump's 90-day pause on his steepest tariffs is nearing its expiration next week. With no clear update on trade deals yet, traders are treading cautiously. The uncertainty surrounding tariff talks could impact sectors tied to international supply chains, such as manufacturing, automobiles, and technology.
Dow Jones futures : ~ 44,901, up ~76 points (+0.17%)
: ~ 44,901, up ~76 points (+0.17%) Nasdaq 100 futures : ~ 22,695.5, up ~3.8 points (+0.02%)
: ~ 22,695.5, up ~3.8 points (+0.02%) S&P 500 futures: ~ 6,257, up ~8.75 points (+0.14%) Investor focus : Traders are closely watching U.S. trade developments ahead of the July 9 tariff deadline and are awaiting key labor market data, including Wednesday's ADP private payroll report and Thursday's non-farm payrolls.
: Traders are closely watching U.S. trade developments ahead of the July 9 tariff deadline and are awaiting key labor market data, including Wednesday's ADP private payroll report and Thursday's non-farm payrolls. Tech cooldown : Stock futures saw limited gains as technology shares took a breather after leading a major rally in recent weeks across the Nasdaq and S&P 500.
: Stock futures saw limited gains as technology shares took a breather after leading a major rally in recent weeks across the Nasdaq and S&P 500. Policy headlines: The Senate has passed President Trump's tax-and-spending package, and market attention is now turning to upcoming remarks from the Federal Reserve and decisions on pending trade tariffs. Event What to Track ADP Payrolls (Wed) Market expects about 120,000 new jobs in June Non-Farm Payrolls (Thu) A key labor market indicator ahead of the holiday Tariff Deadline (July 9) Risk looms if new tariffs are reinstated Fed Powell Remarks Potential insight on interest rate direction In short, US stock market futures are ticking higher as investors stay cautious yet optimistic, navigating economic data, trade news, and fiscal developments in a shortened holiday week. Markets are bracing for some critical economic data this week, starting with the ADP private payrolls report, due Wednesday morning before the bell. Economists expect a gain of 120,000 jobs in June
That's a sharp increase from May's modest 37,000 job additions But the real highlight will be Thursday's nonfarm payrolls report — the most significant labor market data of the month — especially in this holiday-shortened week. This jobs data will help shape expectations around the Federal Reserve's next policy move, especially as inflation remains sticky and growth projections remain mixed. So far, this week has revealed a slight cooling in tech stock enthusiasm, paired with growing interest in more defensive sectors. While short-term volatility is likely as policy and economic data unfold, the longer-term outlook remains cautiously positive. With Trump's economic policies in flux, Fed policy uncertain, and jobs data in focus, investors are navigating through a period that demands flexibility and close attention to macro signals. Dow futures up 93 points, S&P 500 up 0.1%, Nasdaq flat
Tech sector drops over 1%, dragging Nasdaq lower
Health care and materials stocks gained, led by Amgen, J&J, and UnitedHealth
Trump's tax-and-spending bill passed Senate, heads back to House
ADP private payrolls expected to rise by 120,000
Nonfarm payrolls due Thursday will be closely watched
Trump's tariff pause set to expire next week, adding uncertainty Stay tuned for more updates as markets react to policy developments and economic data throughout this pivotal first week of July. Q1: Why are stock futures rising after tech stocks dropped? Because investors shifted from tech to safer sectors like health care and materials after a rough start to the quarter.
Q2: What should traders watch after Trump's tax bill passed the Senate? Traders should watch the upcoming jobs data and tariff policy updates as market drivers.
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