Major Indexes Pull Back After Strong June Performance
U.S. equity futures edged lower early Tuesday as markets today kicked off the second half of 2025, taking a breather after major indexes closed out a stunning second quarter with new record highs. Futures tied to the Dow Jones Industrial Average slipped 60 points, or 0.1%, while S&P 500 futures declined 0.3% and Nasdaq-100 futures also fell 0.3%.
The pullback follows Monday’s strong session, where the S&P 500 advanced 0.5% to post another record close, while the tech-heavy Nasdaq Composite also rose to fresh all-time highs, gaining 0.5%. The blue-chip Dow climbed 275.50 points, or 0.6%.
The major indexes delivered impressive gains in June, with the S&P 500 and Nasdaq Composite rising 5% and 6.6% respectively, while the Dow increased 4.3%. This marked the second consecutive month of substantial gains as the stock market today continues to recover from April’s steep declines.
Premarket Movers: Tech Giants Mixed as Tesla Slides
Among notable premarket movers, Tesla (TSLA) shares dropped nearly 6% in premarket trading as tensions escalated between CEO Elon Musk and President Trump. The feud intensified after Musk criticized the administration’s budget bill, prompting Trump to respond that the Tesla chief had benefited excessively from government subsidies.
Other mega-cap technology stocks showed mixed performance in premarket trading. Chip companies Nvidia (NVDA) and Broadcom (AVGO) were each down about 1%, while Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG), and Meta Platforms (META) fell slightly. Apple (AAPL) bucked the trend with shares up 0.5% in premarket trading.
The Magnificent Seven stocks have shown sharply mixed performance through the first half of 2025. While Meta Platforms and Microsoft have posted gains of 19.2% and 11.6% respectively, Tesla has declined 26.9% and Apple has fallen 18.6% year-to-date.
Trade Negotiations and Fiscal Policy in Focus
Market news today continues to be dominated by developments in trade policy and fiscal legislation. Investors welcomed Monday’s announcement that Canada had rescinded its digital services tax in an effort to restart trade negotiations with the U.S.
Traders are closely monitoring developments related to trade talks as a deadline looms next week for massive tariffs to be reimposed by the Trump administration. The 90-day reprieve on Trump’s steepest tariffs is set to expire, creating uncertainty in the markets today.
Meanwhile, market participants are watching deliberations in Congress on President Trump’s “One Big Beautiful Bill,” as legislators aim to finalize the tax and spending package by the end of this week.
Global Markets and Treasury Yields
Asia-Pacific markets traded mixed Tuesday as investors assessed the record gains on Wall Street and the global impact of U.S. trade policies. Japan’s Nikkei 225 fell 1.24% to end at 39,986.33 after hitting an over 11-month high in its previous session. South Korea’s Kospi rose 0.58% to close at 3,089.65, while Australia’s S&P/ASX 200 ended flat at 8,451.10.
European shares struggled to gain momentum, with the pan-European Stoxx 600 trading around 0.1% higher but wavering between gains and the flatline since the session began.
The yield on the 10-year Treasury note was at 4.24% Tuesday morning, up slightly from yesterday’s close of 4.23%, which was its lowest level since early May. The U.S. dollar index fell 0.2% to 96.66, trading at its weakest level since early 2022.
Economic Data and Fed Rate Cut Expectations
Investors are awaiting key economic data this week, with the highly anticipated June jobs report scheduled for release on Thursday. This report could influence the Federal Reserve’s interest rate decisions in the coming months.
Stock market live trading has been supported by growing expectations that the Federal Reserve will cut interest rates later this year. Treasury yields have declined amid these expectations, further bolstering the bullish outlook for equities.
Other Notable Stock Movers
Beyond the tech giants, several other stocks are making significant moves. Palantir (PLTR) jumped 5% on Monday, rebounding from a 9% decline on Friday. Hewlett Packard Enterprise (HPE) and Juniper Networks (JNPR) soared 14% and 8% respectively after a Department of Justice lawsuit challenging HPE’s acquisition of the networking equipment provider was settled.
Financial stocks performed well after the Fed’s stress test released late Friday showed that major U.S. financial institutions could easily survive a recession. Goldman Sachs (GS) and JPMorgan Chase (JPM) were up 2% and 1.5% respectively on Monday.
As the second half of 2025 begins, investors will be watching for developments in trade negotiations, fiscal policy decisions, and upcoming earnings reports to gauge the direction of the stock market today after its impressive first-half performance.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.