ROUNDUP/New York Stocks Close: Dow Catches Up - Nasdaq and S&P Without Records

NEW YORK (dpa-AFX) - The US indices S&P 500 and Nasdaq 100's pursuit of highs took a break on Tuesday. At the start of July and the second half of the trading year, the Dow Jones Industrial Average, however, attempted to narrow the gap to its record-high peers. With a 0.91 percent increase to 44,494.94 points, it was able to reduce its gap to the record to less than 600 points.

On the broader market and the Nasdaq stock exchange, issues such as the AI ​​boom and increased hopes for US interest rate cuts did not help the indices, which had performed better so far in 2025, to continue their upward trend. While the broad S&P 500 fell only slightly by 0.11 percent to 6,198.01 points, the Nasdaq 100, with its constituent technology stocks, fell by 0.89 percent to 22,478.135 points.

The focus was on the tax and spending bill pushed by US President Donald Trump, which cleared a major hurdle in the US Congress. It also caused Trump's dispute with Tesla CEO Elon Musk to escalate again, putting the electric car manufacturer's shares under renewed pressure. Tesla shares ultimately lost 5.3 percent of their value.

The electric car manufacturer's separation from Musk confidant Omead Afshar continued to contribute to the uncertainty at Tesla. Following this, the news agency Bloomberg reported, citing insiders, that Musk would henceforth assume responsibility for sales in Europe and the US. Investors also expressed caution regarding second-quarter sales figures.

According to market reports, investors generally shifted from technology to other sectors at the start of the second half of the year. Accordingly, negative signs predominated among the seven most important US tech stocks. Several stocks that had performed particularly well this year, including Meta, Nvidia, and Microsoft, fell. Conversely, Apple shares continued their recovery by 1.3 percent. They had already benefited in closing trading the previous evening from reports that the iPhone manufacturer might be using external AI solutions to improve its Siri voice control system.

Healthcare stocks, in particular, supported the Dow, including the heavyweight health insurer UnitedHealth, which had fallen sharply so far in 2025, with a 4.5 percent recovery. The settlement of a contract dispute with a private cancer clinic also had a supportive effect. Without an agreement, thousands of cancer patients would have faced an interruption in their treatment.

Nike shares were also in demand in the Dow. With a 3.3 percent increase, they were again aiming for their Friday high. Before the weekend, the sporting goods manufacturer had given investors high hopes that a turnaround was on the horizon after a long period of weak business. The previous day, there had been a brief countermovement, which has now been reversed.

The realization that sentiment in US industry improved somewhat more significantly than expected in June had no major impact on prices on Tuesday. The ISM Purchasing Managers' Index recorded its first increase after four consecutive declines, but remained below the growth threshold of 50 points. According to analyst Constantin Lüer of NordLB, the outlook for the future remains pessimistic. "A key problem for the companies surveyed remains the somewhat vague situation regarding tariffs," he emphasized./tih/stw

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