Stock Market Live: Tesla Falls, Dow and Nasdaq Slip as Senate Acts on Tax Plan and AI Law
Live coverage: US stocks ease after highs. Tesla drops, tax bill moves in Senate, Fed watch continues. Follow real-time updates and key market moves.

U.S. stock indexes dipped slightly on Tuesday as recent momentum paused and traders shifted focus to ongoing political discussions and upcoming economic updates.
After hitting fresh highs on Monday, the S&P 500 saw a mild drop of 0.3%. The Dow Jones also slipped by 0.2%, while the Nasdaq fell 0.4%, largely dragged down by a sharp drop in Tesla shares. The electric vehicle maker faced renewed pressure as its CEO, Elon Musk, found himself in the spotlight again over tensions with former President Donald Trump.
In Washington, lawmakers continued work on a major tax and spending proposal backed by Trump. With the July 4 target date approaching, discussions extended into the early hours of Tuesday as final changes were debated in the Senate. Among the amendments gaining traction is a proposal that would allow individual states to create their own rules on artificial intelligence — a move that may impact major tech firms.
Also Read: Dow Surges, Nasdaq Hits New High as Tax Bill Pushes Forward & Tariff Threats Cool
Trade talks also remain on the agenda. With limited time before a key July 9 deadline, U.S. officials are now exploring smaller trade arrangements instead of broader agreements. The goal is to avoid a new round of tariffs, which could disrupt international partnerships.
Elsewhere, markets are watching for signals from the Federal Reserve. Chair Jerome Powell is expected to speak later today at a global economic event. His remarks could offer hints on the future of interest rates, especially after recent calls for a large rate reduction. Investors are hoping for signs that the Fed may act sooner if the economy shows signs of strain.
On the economic front, this week’s focus turns to the job market. Tuesday began with new data on job openings, and attention is now on Thursday’s employment report for June. A weaker labor market could increase the chances of a rate cut, making these numbers especially important for investors.
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Stay tuned for live updates throughout the day.
Key Moments
- US stock indexes edge lower after hitting record highs Monday.
- Tesla shares slide amid renewed tensions between Musk and Trump.
- Senate passes amendment lifting the ban on state AI regulation.
- Trump’s sweeping tax and spending bill advances toward July 4 deadline.
- Markets await Fed Chair Powell’s speech for rate cut signals.
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Circle Stock Rallies After Applying for U.S. Bank Charter
Circle (CRCL) shares reversed early losses and rose nearly 3% on Tuesday after the fintech firm officially submitted an application for a national trust bank charter with the Office of the Comptroller of the Currency (OCC).
The move marks a significant step in Circle’s efforts to deepen its role in the regulated financial system as a stablecoin issuer. Investors appeared to welcome the development, pushing the stock higher in afternoon trading.
Since debuting on public markets on June 5, Circle’s stock has soared nearly 500%, fueled by growing interest in crypto infrastructure and its central role in the stablecoin economy.
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Solar Stocks Surge as Senate Strips Tax from Trump’s $3.3 Trillion Bill
Solar energy stocks jumped on Tuesday after a controversial excise tax targeting clean energy projects was stripped from President Trump’s sweeping $3.3 trillion tax package during a key Senate vote.
Shares of Sunrun climbed nearly 10%, while Enphase Energy and SolarEdge Technologies saw gains of around 4%and 7%, respectively, as investors welcomed the news. The market reaction followed confirmation that the Senate removed the proposed tax, which would have applied to wind and solar projects using Chinese-made components.
The excise tax had sparked concern among renewable developers, who warned it would increase project costs due to ongoing supply chain reliance on Chinese parts. Despite the removal, the bill still includes a gradual phaseout of federal subsidies for new wind and solar installations beginning in 2027.
With the measure now advancing toward final approval, clean energy stocks may continue to react to any shifts in legislative details.
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3 Key Business Impacts from Senate Passage of Trump’s Mega Tax Bill
The Senate has passed President Trump’s highly debated tax and spending bill, marking a major step forward for the administration’s economic agenda. The nearly 900-page bill introduces sweeping changes that will have a significant impact on various sectors of the U.S. economy. Here are three key ways it will affect businesses:
1. Overhaul of Tax Laws for Individuals and Corporations
One of the bill's central objectives is to permanently extend the individual tax cuts from the 2017 Tax Cuts and Jobs Act. Additionally, the new legislation includes fresh tax credits aimed at fulfilling some of President Trump’s campaign promises. This includes eliminating taxes on tips, overtime pay, and car loan interest, though these changes are somewhat less generous than what was originally proposed in earlier drafts. For seniors, the bill increases the standard deduction, while also aiming to provide tax relief on Social Security benefits.2. Shifting Focus in Energy Policy
Energy sector businesses are set to see major shifts. While the bill was always expected to wind down tax credits for clean energy, the Senate’s revisions accelerate this timeline. The bill aims to phase out these credits faster than anticipated, signaling a stronger push for fossil fuels. The changes will have far-reaching effects, particularly for companies in the renewable energy sector, as government incentives for wind, solar, and other green energy projects are significantly reduced.3. Healthcare Cuts with Potential Patient Consequences
The tax bill also brings sweeping changes to healthcare funding, with a focus on trimming Medicaid by approximately $900 billion over the coming years. This will hit rural healthcare providers the hardest, particularly hospitals that rely on Medicaid funding to serve their communities. While a $25 billion fund has been set aside to provide relief for these providers from 2028 to 2032, analysts warn that the broader effects will be felt by patients. According to projections, 11.8 million more Americans could find themselves without health insurance by 2034, as Medicaid cuts deepen. -
US Stocks Steady After Senate Passes Trump’s Tax and Spending Bill
US markets stayed mostly flat on Tuesday after the Senate approved President Trump’s major tax and spending plan.
Vice President JD Vance cast the deciding vote in a 50-50 tie, pushing the bill through after Republicans worked overnight to finalize changes and overcome opposition. The bill now moves to the House, where lawmakers will review the Senate's version.
The S&P 500 was down 0.1% in the afternoon, recovering slightly but staying in the red. The Nasdaq Composite dropped about 0.8%, led by a 4% fall in Tesla (TSLA) shares following renewed tensions between Elon Musk and President Trump.
The Dow Jones Industrial Average was the outlier, rising over 1% as some investors shifted focus to more traditional sectors.
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June Manufacturing Data Stays Weak, Tariffs and Uncertainty Drag Orders
US manufacturing activity remained stuck in contraction last month, offering little sign of a rebound for the struggling sector.
The ISM Manufacturing PMI inched up to 49 in June, a slight rise from May’s 48.5 but still below the key 50 mark that signals growth. The industry has now seen nearly two years of mostly negative readings.
Beneath the headline, signs of stress persisted: the employment index fell to 45 from 46.8, pointing to continued job weakness. Meanwhile, the prices paid index — a measure of cost pressures — rose to 69.7, suggesting input inflation remains high.
"Despite the small improvement in the headline number, manufacturing demand is still shaky," said Matthew Martin, senior economist at Oxford Economics. "Ongoing uncertainty over tariffs and who absorbs those costs is slowing or scrapping orders altogether."
Until trade and geopolitical tensions ease, the report signals the sector isn’t likely to break out of its slump anytime soon.
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Apple Stock Gains as Siri AI Partnership Talks Surface
Apple (AAPL) shares rose 2% on Tuesday following reports that the company is exploring deals with OpenAI and Anthropic to boost Siri with advanced AI technology.
According to Bloomberg, Apple has held discussions with both AI firms about integrating their large language models into a revamped version of its voice assistant. While nothing is finalized, the talks suggest Apple is looking outside its own ecosystem to close the gap with AI leaders.
Apple has fallen behind in the AI race compared to peers like Microsoft and Google. Its attempts to modernize Siri have so far failed to impress, and the company’s stock performance in 2025 has reflected that — down 16% year-to-date, trailing most of the “Magnificent Seven” tech stocks.
Tuesday’s move marks a rare bright spot for Apple investors this year.