Traders work at the New York Stock Exchange on June 25, 2025.<\/p>\n
NYSE<\/p>\n
The Dow Jones Industrial Average<\/a> soared on Tuesday as investors rotated out of technology stocks to kick off the second half of 2025.<\/p>\n Investors were also weighing the latest developments with President Donald Trump’s giant tax and spending bill as well as comments from Federal Reserve Chair Jerome Powell.<\/p>\n The blue-chip Dow Jones Industrial Average gained 477 points, or 1%. The S&P 500<\/a> shed 0.1%, however, while the Nasdaq Composite<\/a> lost 0.7%.<\/p>\n Electric vehicle maker Tesla<\/a> fell more than 4% after President Donald Trump suggested in a post on Truth Social<\/a> that the Department of Government Efficiency (DOGE) should look into the government subsidies<\/a> that CEO Elon Musk’s companies have received.<\/p>\n Musk has criticized Trump’s sweeping spending bill, calling it “utterly insane and destructive<\/a>” over the weekend. In response to the president’s recent post, Musk wrote in a post on X<\/a>: “I am literally saying CUT IT ALL. Now.” This isn’t the first time Trump and Musk have sparred over the administration’s spending plans. A feud broke out between the two<\/a> earlier this year.<\/p>\n Trump’s megabill passed in the Senate<\/a> Tuesday in a 51-50 vote<\/a>. The package now moves on to the House, which can still reject changes to the legislation.<\/p>\n Earlier in the day, Powell confirmed at a panel at the European Central Bank’s Forum on Central Banking<\/a> in Portugal that the central bank likely would have cut rates again<\/a> by now were it not for tariffs. He added that any future move would depend on the data and didn’t answer directly regarding whether or not July would be too soon.<\/p>\n “In effect, we went on hold when we saw the size of the tariffs and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs,” Powell said.<\/p>\n Wall Street is coming off another record setting session after came after Canada walked back its digital services tax<\/a> in an attempt to facilitate trade negotiations with the U.S. Ottawa’s move to rescind the new levy comes after Trump said on Friday<\/a> he would be “terminating ALL discussions on Trade with Canada.”<\/p>\n Traders are hoping for deals between the U.S. and its trading partners, as Trump’s\u00a090-day reprieve on his steepest tariffs<\/a>\u00a0is set to expire next week. While Zachary Hill, head of portfolio management at Horizon Investments, doesn’t believe the market expects “very much,” volatility could still be on the horizon.<\/p>\n “If you did see some reimposition of the reciprocal tariff rates that were announced on ‘liberation day,’ I don’t think that would be well received by investors in the near term. Is it a catastrophe or something that’s going to cause a reaction of similar magnitude of what we saw in early April? No, I don’t think so, but we are pretty fully valued here,” he said. “Investors have definitely increased positioning over the last couple of weeks, so I do think that’s a potential vulnerability.”<\/p>\n