FX.co ★ US Stocks Trade Mixed

On Tuesday, U.S. stock markets displayed mixed results as different sectors moved in varied directions, influenced by recent developments in both monetary and fiscal policy within the country. While the S&P 500 remained stable, close to its peak, the Nasdaq 100 decreased by 1%, and the Dow Jones Industrial Average saw a significant increase of 500 points. The U.S. Senate passed President Trump's tax bill by a narrow margin, adding $3.3 trillion to the budget deficit. However, concerns over unsustainable growth in the federal debt raised the possibility of the House contesting these changes. Meanwhile, Federal Reserve Chairman Jerome Powell indicated that most members of the Federal Open Market Committee anticipate interest rate cuts within the year. Despite this, bond yields saw a rise as job openings exceeded expectations and the ISM Manufacturing PMI results surpassed projections. In the tech sector, stocks declined as Congress rejected a motion to block AI regulation in the newly proposed bill, causing companies like Nvidia, Meta, and Broadcom to drop over 3%. Additionally, Tesla shares fell by 5% amid increasing tensions between CEO Elon Musk and President Trump. Conversely, sectors such as healthcare, industrials, and utilities experienced gains, buoying the Dow.