US stock market futures dip as Dow, S&P 500, Nasdaq pull back from record highs ahead of Trump budget bill vote and key Fed rate signals; Apple, Palantir, and Robinhood lead top movers
Stock market today
: Dow, S&P 500, Nasdaq futures dip as Wall Street eyes
Trump budget bill
and Fed rate clues-
US stock market today opened on a quieter note after a record-breaking session, with all major futures slipping slightly in early trading on Tuesday. Investors are keeping a close eye on progress in trade talks and the Senate's ongoing work on President Trump's massive tax and spending bill. Meanwhile, economic data later this week—especially Thursday's jobs report—could offer important clues about a potential
Federal Reserve rate cut
.
Why are Dow, S&P 500, and Nasdaq futures slipping after hitting new highs?
After the S&P 500 closed above 6,200 for the first time on Monday, futures edged down on Tuesday morning.
Dow futures
are down about 0.13%
S&P 500 futures
slipped 0.22%
Nasdaq futures
fell roughly 0.27%
Investors are digesting the recent rally while waiting for fresh guidance from the Federal Reserve and more clarity on U.S. trade policy.
This pullback comes as investors take a breather following strong gains and wait for political and economic developments. One key drag was Tesla (TSLA), which saw its stock decline after CEO Elon Musk reignited tensions with President Donald Trump.
How did the markets close yesterday?
S&P 500 and Nasdaq both ended Monday at record highs, powered by strong gains in tech and AI-related stocks.
The Dow Jones Industrial Average gained around 275 points (0.6%), putting it within striking distance of its all-time peak.
The second quarter wrapped up with a bang:
S&P 500
: up 5.5% year-to-date
Nasdaq
: also up 5.5%
Dow Jones
: gained 3.6%
Live Events
What's happening with Trump's tax and spending bill in the Senate?
Senators worked through the night into Tuesday morning on finalizing President Trump's large-scale tax and spending package. The bill is crucial for Trump's domestic agenda and he wants it signed into law by July 4. While the bill still faces internal Republican debates, one key amendment passed with strong bipartisan support. That amendment removes the federal ban on state-level AI regulation—a major shift that could impact big tech firms that have backed Trump's stance against AI oversight.
Are trade talks facing a reset before Trump's reciprocal tariffs return?
The pressure is mounting as a July 9 deadline approaches. According to The Financial Times, the US has quietly scaled back Trump's aggressive push for 'reciprocal' trade deals. Rather than sweeping agreements, officials are now looking for more limited arrangements to avoid reigniting global trade tensions once Trump's reciprocal tariffs resume next week.
This shift suggests a more flexible approach, likely to calm markets worried about another round of trade disruptions.
U.S. stock market futures today show slight pullback from record highs
S&P 500 futures
are down by around
0.22%
, slipping nearly
14 points
in pre-market trading.
Nasdaq 100 futures
are down approximately
0.27%
, dropping about
61 points
.
Dow Jones futures
are also edging lower by about
0.12%
, a dip of nearly
56 points
.
Earlier market indicators also showed:
Dow futures
near
44,348
, slightly positive.
Nasdaq futures
around
22,842
, showing a modest decline.
S&P 500 futures
holding around
6,242
, slightly off Monday's record.
Futures performance:
S&P 500 futures
are down around
0.22%
, roughly
13.75 points
lower.
Nasdaq 100 futures
have fallen by about
0.27%
, a drop of
61 points
.
Dow Jones futures
are trading down by approximately
0.12%
, slipping around
56 points
.
Could a Fed interest rate cut be coming sooner than expected?
Another major factor for markets this week is Thursday's job report. Investors are hoping for signs that the labor market is cooling, which would increase chances of a Federal Reserve rate cut. Right now, optimism is building that the Fed might act sooner to support the economy if job growth shows signs of slowing.
A weaker-than-expected report could strengthen the argument for cutting interest rates to boost consumer and business spending in the second half of 2025.
What's driving the market right now?
1. Trade optimism with caution
Markets got a boost after the U.S. and Canada resumed trade talks. Canada's move to drop its proposed digital tax helped ease tensions, especially for big tech. However, questions remain about whether the U.S. will extend key tariffs beyond the July 9 deadline.
2. Fed rate cut hopes
Traders are now betting on roughly 68 basis points in Fed rate cuts by the end of 2025, with even deeper cuts expected into 2026. All eyes are on Fed Chair Jerome Powell, who's set to speak at a key ECB forum later today.
3. AI and tech earnings
Big names like Nvidia, Microsoft, Meta, and Broadcom continued to fuel market momentum.
Top movers on Monday included:
Apple
: +2%
Palantir
: +4%
Robinhood
: +13%
Meanwhile,
Amazon
and
Tesla
dipped by about 1.8% ahead of Q2 delivery data.
4. Banking sector strength
Banks rallied after clearing the latest Fed stress tests, boosting confidence in the financial sector.
Which ETFs are showing the market mood?
SPDR Dow Jones ETF (DIA)
: $440.65 (+0.59%)
SPDR S&P 500 ETF (SPY)
: $617.85 (+0.50%)
Invesco QQQ (QQQ)
: $551.64 (+0.65%)
These ETFs reflect the broader confidence in equities even as markets take a short-term pause.
What to watch next?
Key Event
Date
Fed Chair Powell's speech
Today
ISM Manufacturing & S&P Global PMIs
Today
U.S. Jobs Report (Non-Farm Payrolls)
Thursday
Trump's $3.3T tax and spending proposal
Ongoing
Investors are closely tracking any signs of economic softening or policy shifts that could impact the Fed's path forward.
What does the shortened trading week mean for market activity?
Markets will close early on Thursday, July 4, with trading ending at 1 p.m. ET due to the Independence Day holiday. That gives investors even less time to process key data like the job numbers, making every indicator this week feel more urgent.
With many traders already on vacation or trading lighter volumes, even small headlines—such as the Musk-Trump dispute or updates from the Senate—could lead to sharper moves in the stock market.
The US stock market today is in a cautious mood after rallying to record highs. Futures on the Dow, S&P 500, and Nasdaq are slipping slightly as investors track the fate of President Trump's budget bill, developments in trade talks, and possible signals from the Federal Reserve. With a holiday-shortened week and key data coming up, Wall Street is watching every move closely.
Stay tuned as this high-stakes week unfolds—with Washington drama, economic signals, and tech tensions all shaping what happens next in the markets.
FAQs:
Q1. Why are Dow, S&P 500, Nasdaq futures down today?
They're pulling back after record highs as traders await key data and updates on Trump's budget bill.
Q2. Will Trump's budget bill affect the stock market?
Yes, investors are closely tracking Senate progress as it may impact market momentum and policy outlook.
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