US stock market futures edge higher as tech sector cools, Dow gains 93 points, investors eye Trump tax bill and key jobs data
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.
How did the US stock market perform today, July 1?
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
S&P 500:
▼
–0.1%
to close near
6,198
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.
Which stocks were the biggest gainers today?
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.
Wynn Resorts (WYNN):
▲
+8.8%
– Followed LVS higher on Macau-driven momentum.
General Motors (GM):
▲
+5.7%
– Investors favored legacy automakers amid Tesla weakness.
Ford (F):
▲
+4.6%
– 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.
Which stocks dropped the most on July 1?
Tech stocks took a hit as investors reacted to geopolitical headlines, fiscal policy shifts, and valuation concerns:
Live Events
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.
Advanced Micro Devices (AMD):
▼
–4.1%
– Part of the broader tech selloff.
Palantir (PLTR):
▼
–4.1%
– Profit-taking weighed on recent gains.
DexCom (DXCM):
▼
–4.3%
– Healthcare tech names followed the Nasdaq lower.
Coinbase (COIN):
▼
–4.3%
– Crypto-linked stocks declined as Bitcoin dipped below $60,000.
Howmet Aerospace (HWM):
▼
–5.3%
– Profit-booking after a strong June rally.
Williams Companies (WMB):
▼
–6.5%
– Slipped amid volatility in energy and utilities.
Why did stock futures rise today despite Tuesday's tech sell-off?
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.
What happened to tech stocks that pushed markets lower?
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.
What's driving the stock market today?
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.
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.
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.
Interest rate concerns:
Strong June jobs data pushed
Treasury yields higher
, reigniting fears that the
Federal Reserve
might delay expected rate cuts.
How are investors reacting to Trump's tax-and-spending bill?
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.'
Is the market worried about tariffs returning soon?
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.
US stock market futures as of early Wednesday, July 2, 2025:
Dow Jones futures
: ~ 44,901, up ~76 points (+0.17%)
Nasdaq 100 futures
: ~ 22,695.5, up ~3.8 points (+0.02%)
S&P 500 futures
: ~ 6,257, up ~8.75 points (+0.14%)
What's moving the futures today?
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.
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.
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.
What to watch for the rest of the week
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.
What's ahead on the economic calendar this 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.
What does all this mean for stock market investors?
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.
FAQs:
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
an hour ago
- First Post
Erdogan eyes Turkey's return to F-35 program under Trump deal
Washington removed Turkey out of the F-35 program in 2019 and placed penalties on Ankara a year later for purchasing a Russian S-400 surface-to-air missile defence system, but with Trump's return to power, the two Nato allies look eager to resolve the conflict read more President Recep Tayyip Erdogan has voiced optimism that Turkey will be readmitted to the US F-35 project and obtain the stealth fighter fighters in accordance with 'an agreement' with US President Donald Trump. Washington removed Turkey out of the F-35 program in 2019 and placed penalties on Ankara a year later for purchasing a Russian S-400 surface-to-air missile defence system, but with Trump's return to power, the two Nato allies look eager to resolve the conflict. STORY CONTINUES BELOW THIS AD 'I believe that Mr. Trump will remain loyal to the agreement we made. I think the F-35s will be delivered to Turkey step-by-step during his term,' Erdogan said while returning from Azerbaijan, the Anadolu state news agency reported Saturday. He gave no further details about the agreement but said the move was 'part of a geo-economic revolution.' 'The F-35 issue is not only a military technology issue for us, but also a strong partnership issue in international platforms such as Nato,' he added. The sanctions on Turkey's defence sector have soured ties between the two allies but last weekend, Washington's envoy to Ankara Tom Barrack said they were likely to be over 'by the year's end'. Trump and Erdogan would instruct their top diplomats to 'figure out the way and end it and Congress will support an intelligent solution', he told Anadolu on Sunday. In March, Erdogan spoke to Trump about the need to finalise a deal to let Turkey buy US F-16 fighter planes and be readmitted to the development programme for F-35 warplanes. And last month, he said he saw an end in sight to the sanctions, saying Turkey had seen them eased under Trump. STORY CONTINUES BELOW THIS AD
The Print
3 hours ago
- The Print
Pakistanis see Microsoft move as more than a corporate exit. ‘So much for economic boom'
'By focusing on tactical incidents like a multinational leaving, people are not focusing on strategic events like Pakistan's DPI (Digital Public Infrastructure) age, which will usher in a multi-hundred billion dollar digital economy,' Habibullah Khan, CEO of Penumbra, a digital design studio, and an expert on Pakistan's digital economy, told The Print. Former Pakistan President Arif Alvi, in a post on X , said that the country was swimming 'in a whirlpool of uncertainty' while tech experts argue that shifts of this sort will not impact Pakistan's tech ecosystem. New Delhi: Microsoft stopped its operations in Pakistan Friday, after a 25-year presence in the country. Pakistanis see it as a sign of the declining economic condition of the country. 'Even global giants like Microsoft find it unsustainable to stay,' Jawwad Rehman, Microsoft's former country head in Pakistan, wrote in a LinkedIn post. Microsoft's departure comes amid a broader wave of restructuring, with the company recently announcing layoffs impacting approximately 9,100 employees worldwide—about 4 per cent of its workforce. Though there was never a full-scale office in the country, it had maintained a liaison setup supporting corporate, educational, governmental, and individual clients. According to Pakistan's IT ministry, the closure aligns with Microsoft's global shift toward a 'partner-led, cloud-first' model. The ministry emphasised that this should not be seen as a total withdrawal but rather a strategic realignment. However, Pakistan represented only an estimated $50 million, or 0.018 per cent of Microsoft's revenue. Many feel the symbolic weight of the company's exit is heavier than the financial figures suggest. Rehman took to LinkedIn to call the move 'more than a corporate exit', describing it as a reflection of a deteriorating environment for foreign businesses. 'We must ask: What changed? What was lost? What happened to the values, leadership, and vision that once made it all possible?' he wrote. Rehman urged Pakistan's IT ministry to engage proactively with Microsoft's global leadership with a bold, KPI-driven roadmap to retain future collaboration. Also read: Punjab govt renames Jinnah heart institute after Maryam Nawaz. Backtracks after backlash A message to investors There are now debates on whose fault it is—an unstable regime, political masters, or a lack of a tech plan. In his X post, Alvi recalled a pivotal moment in February 2022, when Microsoft co-founder Bill Gates visited Pakistan. According to him, Gates had facilitated a direct line between then-Prime Minister Imran Khan and Microsoft CEO Satya Nadella to announce a major investment, a plan that collapsed following the change in government later that year. By October 2022, Microsoft had chosen Vietnam over Pakistan for its regional expansion. 'Regime change upended those plans, and the promise of investment slipped away,' Alvi wrote. 'Pakistan now spirals in a whirlpool of uncertainty. There is increasing joblessness, our talent is migrating abroad, purchasing power has reduced, economic recovery in the 'awami' context feels like a distant & elusive dream,' he added. Khan, however, emphasised a deeper strategic pivot: Pakistan's digital future doesn't hinge solely on the presence of multinational companies. Instead, he pointed to the importance of building robust DPI—platforms for digital identity, payments, and data exchange—as seen in India, Estonia, and Singapore. 'Pakistan's digital stack is nearly complete. Once UPI, digital ID, and data exchange are integrated, we will witness a tech ecosystem boom. We could see a 400 per cent surge in e-commerce and exponential growth in digital payments. That's the real story, not whether Microsoft keeps an office here,' he said. Still, critics argue that Microsoft's exit sends a discouraging message to global investors. Sayed Z Bukhari, former advisor to Imran Khan, noted that just a few years ago, Microsoft was expanding under the PTI government. 'Today, wrong regime, wrong indicators, wrong direction prevail in Pakistan,' he wrote on X. 'This move sends a troubling signal to international investors and raises serious concerns about the country's business climate. When global tech giants exit, it reflects deep-rooted governance and policy issues-a loss that not only damages Pakistan's reputation but also weakens its digital and economic future,' read a post by PTI's Canada handle. Journalist Ihtisham ul Haq wrote a sarcastic message. ''Mulk kaafi oopar jaa raha hai (The country is progressing),'' read the post. Dentist and activist Dr Awab Alvi had something to say about the government. 'So much for the economic boom hype. With Uber & many others exiting, Pakistan's economy is crumbling despite this fascist govt's desperate attempts to convince us otherwise with hollow promises,' he wrote. A parody account of Pakistan COAS Asim Munir on X, referencing Pakistan's turbulent self-image, summed up the mood. 'First Uber, now Microsoft — the great momin nation with Arab-Turkic-Persian-Indus Valley high-IQ white genes… who just dislodged India as Amreeka's BFF.' First Uber, now Microsoft exits Pakistan — the great momin nation with Arab-Turkic-Persian-Indus valley high iq white genes, with no terrorism, winner of every war in history text book and who just dislodged India as Amreeka's BFF 🫠 — Field Marshal Syed Asim Munir's Ego (@JungjooGernail) July 3, 2025 (Edited by Prasanna Bachchhav)
India Today
5 hours ago
- India Today
Microsoft shuts down Pakistan operations after 25 years amid global restructuring and layoffs
In a move that has rattled Pakistan's already fragile tech landscape, Microsoft has announced the closure of its local office, ending a 25-year presence in the country. The tech giant, as part of its global workforce reduction strategy, will now serve Pakistani clients remotely through its regional hubs and authorised resellers, rather than maintaining a direct presence on the ground. Microsoft confirmed the shift in a statement to TechCrunch, saying it reflects a model it already uses in various countries. The company was quick to assure that existing customer agreements and services will continue unaffected, and that the quality of support will remain decision, though affecting only five employees locally, has sent shockwaves through Pakistan's business and tech communities. These individuals were largely focused on enterprise sales of Microsoft services such as Azure and Office. Unlike in India, Microsoft never established a development or engineering base in Pakistan, limiting its footprint to liaison and sales operations. Still, the withdrawal is being seen as more symbolic than numerical, a troubling signal about Pakistan's appeal to international tech the move coincides with Microsoft's largest round of global job cuts, with over 9,000 positions recently being slashed worldwide. Pakistan's Ministry of Information and Broadcasting has attributed the company's exit to this wider organisational restructuring. In reality, Microsoft had already been quietly transitioning core functions such as licensing and contract management to its European hub in Ireland over the past few years. Former Microsoft Pakistan country head Jawwad Rehman urged the government to take proactive steps to retain and attract global tech players. 'Even global giants like Microsoft find it unsustainable to stay,' he wrote in a candid LinkedIn post, calling on the IT ministry to initiate KPI-driven engagement strategies with multinational firms. Former President Arif Alvi also weighed in on social media, labelling Microsoft's retreat as 'a troubling sign for our economic future.' Alvi revealed that Microsoft had once considered expanding its operations in Pakistan but ultimately chose Vietnam due to the latter's greater political and economic stability. 'The opportunity was lost,' he added. The timing of Microsoft's exit has raised further eyebrows, especially as it comes just days after the government announced an ambitious initiative to provide half a million young people with global IT certifications, including those from Microsoft itself. The disconnect between policy ambition and on-ground corporate confidence has laid bare the challenges facing Pakistan's tech Google continues to invest in local educational initiatives and is even exploring Chromebook manufacturing in Pakistan, Microsoft's quiet withdrawal underscores a broader issue: Pakistan has yet to position itself as a serious player in the global tech outsourcing arena. In contrast to neighbouring India, which has built a thriving IT export economy, Pakistan's tech space is often dominated by regional players such as Huawei, with global giants remaining Pakistan eyes digital transformation, Microsoft's departure is a wake-up call, one that highlights the need for stability, clear policy direction, and stronger engagement with the global tech community.- Ends
