The Dow Jones Industrial Average dipped early Tuesday as investors took profits following Monday’s record-setting session. Futures slipped slightly across the board as traders eyed new developments on trade policy, President Trump’s tax bill, and the upcoming June jobs report.
Dow Jones futures edge lower
As of 6:55 AM ET, Dow futures (YM=F) were down 0.12%, while S&P 500 futures (ES=F) lost 0.23%, and Nasdaq 100 futures (NQ=F) declined 0.28%.
Monday’s close saw the Dow rise 276 points to finish at 44,094.77, a 0.63% gain, as investors cheered a rally in big tech and shrugged off tariff concerns. But Tuesday’s pre-market action signaled a potential cooldown, with cautious sentiment taking hold.
Political and policy pressures
The market is now watching closely as the Senate works to finalize President Trump’s sweeping tax and spending bill. Lawmakers pulled an all-nighter to hammer out amendments, including a bipartisan vote that eliminated the ban on state-level AI regulations—a setback for major tech firms.
Meanwhile, U.S. officials are walking back aggressive trade stances. With the July 9 deadline looming for Trump’s proposed “reciprocal” tariffs, narrow deals are being prioritized over comprehensive trade pacts.
Tesla under pressure
Tesla (TSLA) shares fell nearly 6% in pre-market trading after Trump threatened to revoke federal subsidies from Elon Musk’s companies. The move follows renewed criticism from Musk targeting the administration’s megabill.
Tesla is also facing international headwinds. The EV maker saw sales drop over 60% in Sweden and Denmark in June, with the Model Y’s refresh failing to meet expectations. Global Q2 delivery estimates are down 11% year-over-year, per Bloomberg.
Economic data in focus
Investors are gearing up for Thursday’s critical June jobs report, which could steer the Fed’s next move on interest rates. A weaker labor market would support growing calls for rate cuts, especially as inflation cools.
Other economic data scheduled for release Tuesday includes:
- JOLTS Job Openings (May)
- ISM Manufacturing Index (June)
- Construction Spending (May)
- Dallas Fed Services Activity
- S&P Global Manufacturing PMI
Markets will close early Thursday at 1 p.m. ET for the Independence Day holiday.
Big movers today
- Robinhood (HOOD): +2% pre-market. CEO Vlad Tenev highlighted bullish sentiment around AI and crypto.
- Wolfspeed (WOLF): +70% pre-market after filing Chapter 11, with investors betting on a rebound.
- Tesla (TSLA): -6% amid subsidy threats and weak EU sales.
Broader market trends
Though futures slipped, Monday marked a major rebound milestone for U.S. equities:
- S&P 500 closed at 6,204.95, up 0.52%
- Nasdaq Composite rose 0.47% to 20,369.73
- Fear & Greed Index: Sitting at 66, indicating “greed”
Volatility has eased sharply from April’s tariff turmoil. The VIX now trades near 17, a sharp drop from the 50+ spike seen during the spring panic.
The U.S. dollar continued its historic slide, with the Dollar Index down 10.7% YTD—its worst first half since 1973.
What’s next?
The Dow remains about 1,000 points below its all-time high, while the S&P 500 and Nasdaq have already broken records. Investors will be watching for:
- The Senate’s final tax bill vote
- Trump’s next tariff moves
- Thursday’s jobs data
The second half of 2025 promises volatility—but also opportunity. Investors with cash on the sidelines may look to re-enter on dips, particularly in sectors tied to AI, infrastructure, and interest rate sensitivity.