Stock Market Today: Stocks Pull Back Amid Tax Bill Debate and Trade Talks

US stocks are mixed today as Wall Street deals with ongoing concerns over President Trump’s massive tax and spending bill and the latest developments in trade talks. The S&P 500 (GSPC) is down about 0.2%, pulling back from record highs reached earlier this week. Meanwhile, the Nasdaq Composite (IXIC) dropped around 0.9%, with Tesla (TSLA) leading the declines after a renewed feud between CEO Elon Musk and President Trump. On the other hand, the Dow Jones Industrial Average (DJI) rose 0.9%, as some sectors found support amid broader market uncertainty.

As lawmakers in the Senate continue to push through amendments to Trump's tax bill, investors are keeping a close eye on progress toward finalizing the package before the July 4 deadline. This comes as trade concerns resurface, with the US and its trading partners scrambling to negotiate narrower deals ahead of the July 9 deadline for the resumption of reciprocal tariffs.

Market Movers:

• Tesla (TSLA): -4.88%: Tesla's stock took a significant hit today after President Trump once again targeted the company in a social media post, threatening to cut subsidies for Tesla and SpaceX. The renewed feud between Musk and Trump comes after the Senate’s version of the budget bill removed key provisions that benefit electric vehicle manufacturers, which directly impacts Tesla. This has caused investor anxiety, leading to a sharp drop in Tesla’s stock price.
• Wolfspeed (WOLF): +106.21%: Shares soared despite the company filing for Chapter 11 bankruptcy protection. The semiconductor maker, which has been struggling financially, saw its stock price jump as it announced plans to restructure and reduce its $4.6 billion debt load. Wolfspeed's bankruptcy filing comes after delays in funding for a $5 billion plant under the CHIPS Act, a blow to its growth prospects, but investors are hopeful about its long-term recovery plan.
• Apple (AAPL): +1.04%: Shares gained 2% today following reports that the company is considering integrating AI technology from startups Anthropic and OpenAI into its voice assistant, Siri. This potential partnership marks Apple’s latest effort to catch up to its competitors in the AI race. The news fueled optimism among investors, especially as Apple has faced struggles to keep pace with other tech giants in the AI space.
• Robinhood (HOOD): -3.05%: Despite a strong year in 2025, Robinhood’s stock fell today after analysts adjusted their outlook on the company following the launch of new crypto services. While the company has seen significant gains this year, particularly with the surge in crypto-related stocks, some investors are concerned about the future profitability of Robinhood's crypto business, given regulatory uncertainties surrounding the industry.

Tax and Spending Bill Moving Through Senate

The major news driving the market today is the ongoing debate in the Senate over President Trump’s massive tax and spending bill. Senate lawmakers have voted through the night to finalize amendments to the bill, which includes provisions that are both supportive and controversial for various sectors. One significant amendment that has passed with bipartisan support is the strike-down of the ban on state-level AI regulation, which had drawn concern from tech companies like Apple and Google. The debate continues, however, as some Republicans continue to oppose certain parts of the bill, particularly those that could lead to increased government intervention in business practices.

Investors are watching the progress of this bill closely, as it has implications for both the broader market and specific industries, including technology and energy. The bill’s tax changes, particularly related to electric vehicle subsidies, are affecting stocks like Tesla, which stands to lose key incentives that have supported its growth.

Trade Talks and the Push for Narrower Agreements

Alongside the legislative developments, the ongoing trade negotiations are also weighing on investor sentiment. As the US approaches the July 9 deadline for the resumption of President Trump’s "reciprocal" tariffs, officials are working to finalize narrower trade deals with key partners to avoid the broader tariffs initially planned. This has created an air of uncertainty, especially for sectors like manufacturing, which are highly sensitive to trade policy. The possibility of more targeted agreements has some investors hopeful for a resolution that could ease trade tensions and mitigate the impact on global supply chains.

Federal Reserve and Economic Data

Another area of focus for investors today is the Federal Reserve’s stance on interest rates. Following comments from Fed Chair Jerome Powell at an ECB forum, market participants are increasingly focused on the possibility of a rate cut later this year. Powell suggested that tariffs are complicating the Fed's decision-making, but overall, the US economy remains healthy. As the market digests the implications of Powell’s remarks, particularly in light of fresh job openings data and manufacturing figures, there is growing speculation that the Fed may ease monetary policy if economic conditions worsen.

Looking Ahead

Investors will remain focused on the Senate’s finalization of the tax and spending bill, as well as the ongoing trade negotiations. The July 9 deadline for the resumption of tariffs is approaching quickly, and any developments on that front could have a significant impact on market sentiment. Additionally, the Federal Reserve's policy stance will continue to be a major factor in market movements, particularly with growing expectations of rate cuts later this year.

As we head into the second half of 2025, stock valuations are rising, and many investors are assessing whether the market can sustain its recent momentum. The outlook for interest rates, trade policies, and fiscal legislation will be critical in determining the trajectory of the market in the coming months. With uncertainties still looming, the next few weeks will be crucial for shaping the direction of US equities.