US stocks mixed as Trump tax Bill advances, Tesla falls
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Traders working on the floor of the New York Stock Exchange, in New York City, on July 1.
PHOTO: REUTERS
- The Senate approved Donald Trump's Bill to extend tax cuts and deeply reduce social spending, which is projected to increase national debt by US$3 trillion.
- The Dow rose 0.9%, while the S&P 500 and Nasdaq declined 0.1% and 0.8% respectively, despite manufacturing shrinking for the fourth consecutive month.
- Tesla's stock fell 5.3% after Elon Musk criticised the Bill, leading to a feud with Trump, while GM and Ford shares rose due to increased auto sales.
AI generated
NEW YORK - Wall Street stocks finished mixed on July 1 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 Mr Trump’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 (S$3.8 trillion) to the US national debt.
The Dow Jones Industrial Average rose 0.9 per cent to 44,494.94.
But the broad-based S&P 500 dipped 0.1 per cent to 6,198.01, while the tech-rich Nasdaq Composite Index dropped 0.8 per cent to 20,202.89. Both the S&P 500 and Nasdaq closed at records on June 30.
Data released on July 1 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 per cent as the electric car company’s chief executive officer Elon Musk sparred with Mr Trump over the tax and spending Bill.
After Mr Musk lambasted the legislation as wasteful and misguided, Mr Trump warned of retribution against Tesla and other Mr 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 per cent and 4.6 per cent, respectively, after reporting higher second-quarter US auto sales, as consumers accelerated purchases to get ahead of US tariffs. AFP
