Linea Mercati Interview 7/1/25
July 2, 2025Linea Mercati Interview 7/2/25
July 3, 2025Washington, D.C. (AFP) – Wall Street closed without a clear direction on Tuesday, digesting the US Senate’s passage of Donald Trump’s budget law, while hosting a new salvo of economic data.
Published: 01/07/2025 – 22:31Modified: 01/07/2025 – 22:29
An operator on the New York Stock Exchange, June 30, 2025 – TIMOTHY A. CLARY / AFP
The Dow Jones rose 0.91% while the Nasdaq index lost 0.82 per cent and the expanded S-P 500 index 0.11%.
The market “focuses on the passage of the big budget law” by Donald Trump, comments Peter Cardillo of Spartan Capital Securities.
The US president gleaned a major legislative victory on Tuesday with the narrow passage in the US Senate of his trillion-dollar budget bill, which includes massive tax credits, but also large cuts in health.
“There would be tax cuts for businesses (…) but this also poses a threat to the deficit: there is therefore a negative side and a positive side” for the market, explains Mr. Cardillo.
The Congressional Fiscal Office, which was tasked with not-partisanly assessing the impact of the bills on public finances, estimates that the bill would increase debt by more than .3,000 billion dollars by 2034.
Elsewhere, in terms of trade, “agreements are likely to materialise over the next five to six weeks”, says Mr. Cardillo.
Investors are scrutinizing Washington’s current discussions with many countries, in order to avoid the massive tariff delivery promised by Donald Trump, but has yet suspended until July 9.
On the indicator side, investors turned to the publication of the ISM index, which measures activity in services in the United States, was slightly higher than the market forecast.
Another publication is that of the US Department of Labor’s JOLTS report, which was “a positive element in the day’s data”, according to Bill Adams of Comerica Banks, with an increase in offers.
As the labor market is a concern of the US central bank, its weakness could drive rate cuts, and conversely, its resilience is pushing the monetary institution to keep its policy rates at the high level at which they have been at for several months.
Investors are now waiting for the ADP survey on job creation in the private sector in June and the Ministry of Labour’s report on employment in June.
In the bond market, the yield on US ten-year debt was 4.25% at around 20:15 GMT, compared to 4.23% at the close on Monday.
Elsewhere on the sidelines, analysts at Briefing.com have observed “a certain rotation to the detriment of the large-capitalization equities” of the technology sector “and for the benefit of the small and medium-sized capitalizations” of the Dow Jones.
Electric vehicle specialist Tesla fell (-3.35 percent to 300.71 dollars) after another blunder between his boss Elon Musk and Donald Trump over America’s fiscal policy.
After this new argument, “investors fear that the Trump administration will no longer be tough and closely monitor US government spending on Tesla/SpaceX,” says Daniel Ives of Wedbush Securities.
Ford car manufacturers (up to 4.52% to 11.35 dollars) and General Motors (up 5.73% to 52.03 dollars) shone after registering strong sales growth in the second quarter in the United States, with consumers cheating their purchases before the entry into force of customs duties.
Only Toyota finished in the red (-0.42% to USD 171.54), with sales almost stable in June over a year (up 0.1%) but up in the quarter.
– 2025 AFP
