MARKETS USA/Uneven - Wall Street awaits trade agreement

DJ MARKETS USA/Inconsistent - Wall Street awaits trade agreement

DOW JONES--Following recent record highs, investors on Wall Street took some profits on Tuesday. While the Dow Jones index gained, the S&P 500 and the Nasdaq Composite declined. The latter had reached new record highs at the beginning of the week. Traders said the closer the July 9 end of the suspension of tariffs threatened by US President Donald Trump against virtually all countries in the world drew, the greater the willingness to take profits. While the news cycle continued to be dominated by predominantly positive headlines, investors were still missing concrete results.

According to reports, the EU is open to a trade agreement with the US. The EU is willing to accept a uniform tariff of 10 percent on many products, but in return, Brussels is demanding lower tariff rates in some key sectors such as automotive manufacturing, steel, and aluminum, where US tariffs are particularly high.

The Dow Jones Industrial Average improved by 0.9 percent to 44,495 points. The S&P 500 and the Nasdaq Composite lost 0.1 percent and 0.8 percent, respectively. According to preliminary data, the NYSE recorded 2,080 gainers (Monday: 1,567) and 699 losses (1,207). 46 (70) stocks closed unchanged.

Meanwhile, the Senate narrowly approved the legislative package, dubbed the "Big Beautiful Bill" by US President Trump. The bill will now go to the House of Representatives. Trump intends to use the legislative package to implement campaign promises such as continued tax relief and more funding for border security and defense.

Meanwhile, the released US economic data did not support the need for rapid interest rate cuts. However, Fed Chairman Jerome Powell does not want to rule out a rate cut by the central bank in July. In a panel discussion at the European Central Bank's Monetary Policy Forum, when asked whether July would be too early, Powell said: "A rate cut is not off the table at any meeting." The Federal Open Market Committee "decides on a meeting-by-meeting basis."

Jolts data showed an increase in job openings in May, which is likely to lead to rising wages and drive inflation. The price component of the ISM manufacturing index increased. Only the employment and new orders components weakened slightly.

Musk-Trump escalation depresses Tesla shares

The renewed dispute between Trump and Tesla CEO Elon Musk also served as a pretext for profit-taking. The latter has even threatened to found his own political party if the tax bill is passed in Congress. Meanwhile, Trump hinted that the government agency for government efficiency improvement, which Musk until recently headed, could take on Musk's company. Tesla fell 5.3 percent.

In the bond market, yields turned positive over the course of the day and rose slightly. The yield on ten-year bonds rose by 5 basis points to 4.25 percent. The release of US data eased some of the recession fears that had weighed on yields, it was reported.

The dollar fell to another three-and-a-half-year low, and the dollar index lost 0.1 percent. Pepperstone strategist Michael Brown expects the dollar to decline further. The perception of U.S. exceptionalism continues to fade, and international investors continue to shift capital out of the U.S. in response to ongoing political uncertainty and incoherence. The euro is likely to benefit most from a weaker dollar.

The continued depreciation of the dollar pushed the price of gold up by 1.1 percent to $3,338 per troy ounce. According to market strategist David Morrison of Trade Nation, demand for safe haven assets is not waning. Furthermore, the weak dollar is increasing the attractiveness of the precious metal. Others see a further connection between gold's strength and dollar weakness. More and more central banks are turning away from the greenback and instead hoarding gold as a reserve currency.

The weak dollar also supported oil prices. Brent and WTI crude prices each rose by 0.9 percent. This was offset by supply concerns due to expected higher OPEC+ production and hopes for a pick-up in demand due to trade agreements, according to the report.

Amazon give way slightly

Amazon plans to continue manufacturing its industrial robots primarily in the United States. This will allow the retail giant to avoid potential import tariffs. The share price nevertheless lost 0.5 percent.

Wolfspeed shares surged 103.1 percent after the semiconductor manufacturer filed for Chapter 11 bankruptcy protection. The company is pursuing a risky plan to shed billions of dollars in debt. Investors are betting on the penny stock's success.

Progress Software's share price fell by 13 percent after actually delivering convincing business figures and an improved outlook. However, revenue from software licenses developed weakly. The company also acquired the Spanish startup Nuclia.

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INDEX last +/- % absolute +/- % YTD
DJIA 44,494.94 +0.9% 400.17 +3.6%
S&P 500 6,198.01 -0.1% -6.94 +5.5%
NASDAQ Comp 20,202.89 -0.8% -166.84 +5.5%
NASDAQ 100 22,478.14 -0.9% -200.87 +7.9%

FOREIGN CURRENCY last +/- % 0:00 Mon, 17:58 % YTD
EUR/USD 1.1792 +0.1% 1.1781 1.1771 +13.8%
EUR/JPY 169.52 -0.1% 169.71 169.70 +4.2%
EUR/CHF 0.9342 -0.0% 0.9345 0.9345 -0.4%
EUR/GBP 0.8582 +0.0% 0.8581 0.8579 +3.7%
USD/JPY 143.76 -0.2% 144.05 144.17 -8.4%
GBP/USD 1.3741 +0.1% 1.3731 1.3721 +9.7%
USD/CNY 7.1536 -0.0% 7.1566 7.1592 -0.7%
USD/CNH 7.1619 +0.0% 7.1588 7.1599 -2.4%
AUS/USD 0.6577 -0.1% 0.6580 0.6572 +6.3%
Bitcoin/USD 105,397.90 -1.6% 107,162.40 107,627.70 +13.4%

Crude oil last VT settlement. +/- % +/- USD % YTD
WTI/Nymex 65.69 65.11 +0.9% 0.58 -9.6%
Brent/ICE 67.34 66.74 +0.9% 0.60 -11.0%

METALS last previous day +/- % +/- USD % YTD
Gold 3,337.75 3,302.88 +1.1% 34.88 +25.9%
Silver 30.54 30.64 -0.3% -0.10 +9.9%
Platinum 1,150.78 1,151.82 -0.1% -1.04 +31.5%
Copper 5.04 5.03 +0.1% 0.01 +23.0%
YTD based on the previous day's closing price
(Information provided without guarantee)
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(END) Dow Jones Newswires

July 01, 2025 4:16 p.m. ET (8:16 p.m. GMT)

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