U.S. Stock Market Ends Tuesday Mixed Amid Musk-Trump Feud

(MENAFN) The New York Stock Exchange wrapped up Tuesday with a mixed performance across major indices.

The Dow Jones Industrial Average surged by 0.91%, adding 400.17 points to finish at 44,494.94.

In contrast, the Nasdaq Composite slid 0.82%, or 166.85 points, closing at 20,202.89. Similarly, the S&P 500 fell by 0.11%, losing 6.94 points to end at 6,198.01.

Tesla's stock took a significant hit, plunging 5.34% after tensions reignited between CEO Elon Musk and President Donald Trump over the president's controversial spending bill. Musk once again criticized the legislation, prompting a sharp response from Trump. The president lashed out, stating that Musk would “head back home to South Africa” if federal electric vehicle subsidies were reduced.

Trump also raised the possibility of deporting Musk and demanded that the Department of Government Efficiency (DOGE) investigate the subsidies received by Musk’s companies.

Meanwhile, Trump’s much-discussed “Big, beautiful bill” narrowly passed in the Senate with a 51-50 vote and is now on its way to the House of Representatives.

Federal Reserve Chairman Jerome Powell weighed in on the situation, confirming that the central bank would have implemented a rate cut had Trump not imposed his hefty tariffs.

"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 explained.

Investors are bracing for further trade announcements, with the July 9 deadline for tariff negotiations fast approaching.

Trump made it clear that he had no intention of extending the deadline for countries to finalize trade deals with the United States.

"No, I'm not thinking about the pause. I'll be writing letters to a lot of countries," he remarked.

The president also expressed doubts about reaching a trade agreement with Japan, noting he wasn't confident the deal would come to fruition. "We've dealt with Japan. I'm not sure we're going to make a deal. I doubt it with Japan," Trump said while speaking to reporters on Air Force One as he returned from Florida.

On the economic front, June's S&P Global Purchasing Managers' Index (PMI) for the US manufacturing sector exceeded expectations, rising to 52.9 points.

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