Tesla shares plunge, Nasdaq falls as Trump bill comes into focus

• Stock market reacts to Trump's tax plan
• Federal Reserve remains cautious about rate cuts
• Tesla crashes amid tensions between Musk and Trump

The U.S. stock market was mixed on Tuesday, with the S&P 500 and Nasdaq giving back some of their recent gains. The S&P 500 fell about 0,1% after closing above 6.200 points for the first time the day before. The Nasdaq, which is heavily weighted by technology companies, fell about 0,5%, dragged down by a drop in Tesla shares. The Dow Jones Industrial Average rose 0,6%, supported by stocks in more traditional sectors.

Tesla’s retreat comes amid renewed public tensions between Elon Musk and U.S. President Donald Trump. The rivalry has gained new momentum with the passage of a sweeping tax bill in the Senate, pushed by the current Republican administration. The package, which includes tax cuts and redistributions, has sparked backlash in the tech sector, especially after the approval of an amendment that allows state regulations on artificial intelligence — contrary to the interests of big companies in the sector.

In the trade arena, the US government has reduced pressure for broad “reciprocal” agreements, according to the Financial Times, as the July 9 deadline for Trump’s proposed tariffs to come into effect approaches. This change in strategy aims to facilitate more specific agreements with strategic partners.

Meanwhile, investors closely followed Federal Reserve Chairman Jerome Powell's remarks at a European Central Bank forum in Sintra. Powell indicated that current tariffs are influencing the Fed's decision, which remains cautious about the possibility of interest rate cuts. According to him, although the US economy remains solid, the impact of trade policies weighs on projections.

Data released on Tuesday reinforced the view that the labor market is stable, but with signs of stagnation. The JOLTS survey revealed a higher-than-expected number of job openings in May, while hiring and firing rates remain near historic lows. These indicators should fuel debates about the next steps for U.S. monetary policy.