The American stock market noted mixed trends, as the esteemed Dow ramped up by 400 points, following a thin victory of the tax bill in the Senate. The legislative piece now advances to the House for ultimate sanction, yet its future remains uncertain. There is ongoing opposition from various representatives concerning Medicaid cutbacks, augmentations to the budget deficit, and reduced food aid. The lawmakers aim to secure the bill’s endorsement and deliver it to the President before July 4th.
The Dow experienced a surge of 0.91% or 400.17 points, landing at 44,494.94. Meanwhile, the comprehensive S&P 500 saw a decrease of 0.11% or 6.94 points, settling at 6,198.01, and the tech-dominated Nasdaq plunged by 0.82% or 166.85 points to 20,202.89. The niche 10-year Treasury yield witnessed a slight climb to 4.248% in the wake of robust economic figures, which subsequently reduced prospects for an imminent rate slash.
The Department of Government Efficiency is rumored to be examining the subsidies granted to a manufacturer of electric vehicles, in reaction to continuous critique of the tax bill’s extravagance expressed through social media. This investigation carries potential implications for the electric vehicle producer, whose stocks have already dropped more than 5%.
Economic statistics have also imposed certain constraints on stocks. According to the Institute for Supply Management (ISM), the manufacturing PMI for the last month experienced a marginal increase to 49.0, rising from a six-month low of 48.5 recorded in May, which was slightly more than economists’ prediction of 48.8. Job vacancies in May saw an unexpected surge, indicating potential hurdles for the Federal Reserve in defining interest rate cutbacks. The number of job openings escalated from 7.4 million in April to 7.8 million, superseding economists’ forecast for a minor drop to 7.3 million.
The economic forces and job sector continue to demonstrate key signs of robustness. This might reinforce the Federal Reserve Chair’s inclination to persist with the vigilance approach towards rate alterations. Minimized rates translate into reduced borrowing expenses, stimulating increased expenditure by corporations and consumers.
Progress Software’s quarterly revenues during the second quarter fell short of analyst predictions, though the firm’s earnings per share exceeded expectations. The firm’s stocks saw a downturn of 13%. AeroVironment announced its plans for debt repayment, causing its shares to go down by 11.42%. Circle Internet Group initiated an application process for a bank charter to the Office of the Comptroller of the Currency, leading to an increase in their shares by 6.71%. A renowned EV maker reported a sixth consecutive monthly sales decline in Sweden and Denmark during June, resulting in a 5.34% share slump.
Wolfspeed took measures to restructure its liabilities by filing for a Chapter 11 bankruptcy, prompting its shares to skyrocket by 98%. A surge in June’s gambling revenue triggered an increase in shares for casino operators such as Wynn and Las Vegas Sands. Wynn’s shares were boosted by 8.85%, whilst Las Vegas Sands noted an increase of 8.92%.
A certain enterprise succeeded in raising $220 million for the purpose of purchasing Bitcoin and equipment to mine digital assets. During the same period, Bitcoin observed a marginal decrease of 1.56%, with the closing value set at $105,495.60