The stock market saw mixed results on Tuesday as investors rotated out of technology stocks to start the second half of 2025. The Nasdaq inched down 0.11% to close at 6,198.01, while the S&P 500 lost 0.82%, settling at 20,202.89. The Dow was the outlier, gaining 400.17 points, or 0.91%, to end at 44,494.94.
Traders moved away from tech giants and opted for health-care companies. Health-related stocks jumped more than 4%, lifting the 30-stock Dow. It’s a turnaround from the market’s tech-driven recovery in the second quarter, as the Nasdaq jumped nearly 23% but was off 0.9% to start the third quarter.
“For the last two months of the quarter, it was really risk on. It was about buying stocks that had these really strong secular growth drivers like AI and technology,” said Anthony Saglimbene, Ameriprise chief market strategist. “I think we’ve exhausted that trade.”
Elsewhere, electric vehicle maker Tesla fell 5% after President Trump suggested the Department of Government Efficiency should investigate the subsidies CEO Elon Musk’s companies have received.
This isn’t the first time Trump and Musk have sparred over the administration’s spending plans, with Musk criticizing Trump’s recent megabill. Earlier in the day, Federal Reserve Chair Jerome Powell confirmed at a conference in Portugal that the Fed’s actions were influenced by the impact of tariffs. “In effect, we went on hold when we saw the size of the tariffs and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs,” Powell said.
Tech stocks shift dampens Nasdaq
Traders are hoping for new deals between the U.S. and its trading partners as Trump’s tariffs are set to expire next week. Notable movements included Figma filing for an initial public offering on the NYSE, disclosing $749 million of revenue for 2024, with a net loss of $732.1 million.
Seventeen stocks in the S&P 500 reached new 52-week highs during Tuesday’s trading session, and eight secured new all-time highs. Public companies continued to show strong interest in bitcoin, acquiring about 131,000 coins in the second quarter, growing their bitcoin balance by 18%. Goldman Sachs upgraded Oshkosh Corp.
to buy from neutral, raising its price target to $131 per share from $124. Another highlight was Kontoor Brands, which saw its shares rally after being added to Goldman Sachs’ conviction list. On Tuesday, Senate lawmakers narrowly passed President Donald Trump’s tax-and-spending bill, following days of heated negotiations.
Vice President JD Vance was the tiebreaker, resulting in a final vote of 51-50. The bill now goes back to the House as lawmakers rush to get it to Trump’s desk for signing before a July 4 deadline. The Centers for Medicare & Medicaid Services proposed a rule change that could affect reimbursement rates for continuous glucose monitors and insulin pumps, sending shares of diabetes tech stocks lower.
Overall, the market closed on a mixed note, with the Dow gaining significantly, while the S&P 500 and Nasdaq faced minor declines. Investors continue to watch for further developments in government policies and economic indicators.
