US stocks mixed as Trump tax bill advances, Tesla fall
The Dow Jones Industrial Average rose 0.9 percent, the S&P 500 shed 0.1 percent, while the Nasdaq Composite Index was down 0.8 percent. Photo: Reuters
Wall Street stocks finished mixed on Tuesday after the Senate approved Donald Trump's sweeping legislation to extend tax cuts and enact deep reductions in social spending.
The Republican-led upper congressional chamber narrowly cleared the US President's mammoth domestic policy bill, sending the measure back to the House of Representatives, where the vote is also expected to be close.
Equity market viewers have cheered the prospects of extending tax cuts while expressing misgivings about projections that the measure will add some US$3 trillion to the US national debt.
The Dow Jones Industrial Average rose 0.9 percent to 44,494. But the broad-based S&P 500 dipped 0.1 percent to 6,198, while the tech-rich Nasdaq Composite Index dropped 0.8 percent to 20,202.
Both the S&P 500 and Nasdaq closed at records on Monday.
Data released on Tuesday showed US manufacturing activity shrank in June for a fourth straight month, though by a slower rate than the prior month.
The report comes ahead of key US data later in the week, including the closely watched monthly jobs report.
Among individual companies, Tesla fell 5.3 percent as the electric car company's CEO Elon Musk sparred with Trump over the tax and spending bill.
After Musk lambasted the legislation as wasteful and misguided, Trump warned of retribution against Tesla and other Musk ventures.
"This high-profile feud introduces political risk," Briefing.com said of the tiff.
"The personal nature of the conflict, amplified by Trump's comments implying Tesla's reliance on subsidies for survival, has sparked fears of broader policy shifts targeting Musk's business empire. This political uncertainty undermines investor confidence."
Meanwhile, rival automakers General Motors and Ford jumped 5.7 percent and 4.6 percent respectively, after reporting higher second-quarter US auto sales, as consumers accelerated purchases to get ahead of US tariffs. (AFP)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
2 hours ago
- South China Morning Post
China's ban on ex-Philippine senator won't halt Manila's South China Sea stance: experts
Advertisement The indefinite travel ban on Tolentino, a former Senate majority leader who lost his re-election bid in May, was announced by China's foreign ministry on Tuesday, a day after his term formally ended. The ministry accused Tolentino of 'egregious conduct on China-related issues'. 'For quite some time, driven by selfish interests, a handful of anti-China politicians in the Philippines have made malicious remarks and moves on issues related to China that are detrimental to China's interests and China-Philippines relations ,' ministry spokeswoman Mao Ning said in a brief statement. In response, Tolentino released a statement calling the sanction 'a badge of honour' and 'a testament to my unwavering commitment to protect our national interest and our people's dignity.' 'No foreign power can silence me or weaken my resolve to uphold our sovereignty,' he added. Advertisement The Chinese embassy in Manila had earlier accused Tolentino of playing 'the so-called China card to serve their political self-interests and boost their election prospects before the midterm elections. Such attempts are despicable and doomed to failure'.
South China Morning Post
2 hours ago
- South China Morning Post
Tesla's global sales drop again as competition, Musk backlash bite
Tesla posted another big drop in quarterly deliveries on Wednesday, putting it on course for its second straight annual sales decline as demand falters due to backlash over CEO Elon Musk 's political stance and an ageing vehicle line-up. Still, shares of the electric carmaker gained 3 per cent in early trading as the decline proved less severe than the bleakest analyst projections. Tesla said it delivered 384,122 vehicles in the second quarter, down 13.5 per cent from 443,956 units a year ago. Analysts expected it to report deliveries of about 394,378 vehicles, according to an average of 23 estimates from Visible Alpha, though projections went as low as 360,080 units based on estimates from 10 analysts over the past month. 'The market is reacting to the deliveries not being as bad as potentially thought with multiple analysts cutting their forecasts over the past week,' said Seth Goldstein, senior equity analyst at Morningstar. The stock has lost 25 per cent of its value so far this year as investors feared brand damage in Europe and US from Musk's embrace of right-wing politics and his role in spearheading the Trump administration's cost-cutting effort.
South China Morning Post
5 hours ago
- South China Morning Post
China's ban on ex-Philippine senator unlikely to sway Manila's stance in South China Sea
The indefinite travel ban on Tolentino, a former Senate majority leader who lost his re-election bid in May, was announced by China's foreign ministry on Tuesday, a day after his term formally ended. The ministry accused Tolentino of 'egregious conduct on China-related issues'. 'For quite some time, driven by selfish interests, a handful of anti-China politicians in the Philippines have made malicious remarks and moves on issues related to China that are detrimental to China's interests and China-Philippines relations ,' ministry spokeswoman Mao Ning said in a brief statement. In response, Tolentino released a statement calling the sanction 'a badge of honour' and 'a testament to my unwavering commitment to protect our national interest and our people's dignity.' 'No foreign power can silence me or weaken my resolve to uphold our sovereignty,' he added. The Chinese embassy in Manila had earlier accused Tolentino of playing 'the so-called China card to serve their political self-interests and boost their election prospects before the midterm elections. Such attempts are despicable and doomed to failure'.
