Wall Street is split as Tesla and tech drop while most other US stocks climb
NEW YORK AP U S stocks are drifting in mixed trading on Tuesday as Wall Street s momentum slows after setting record highs in each of the last two days The S P was down in afternoon trading and potentially on track for its first loss in four days The Dow Jones Industrial Average was up by points or as of p m Eastern time and the Nasdaq composite was lower Tesla tugged on the realm as the relationship between its CEO Elon Musk and President Donald Trump soured even further Once allies the two have clashed in recent weeks and Trump suggested there s potentially BIG MONEY TO BE SAVED by scrutinizing subsidies contracts or other regime spending going to Musk s companies Tesla fell and was one of the heaviest weights on the S P It had already dropped a little more than for the year so far coming into the day in part because of Musk s and Trump s feud Drops for several darlings of the artificial-intelligence frenzy also weighed on the realm Nvidia s decline of was the strongest force pushing the S P lower But more stocks were rising within the index than falling led by several casino companies They rallied following a account showing better-than-expected advancement in overall gaming revenue in Macao China s casino hub Wynn Resorts climbed and Las Vegas Sands gained Automakers outside of Tesla were also strong with General Motors up and Ford Motor up The overall U S stock realm has made a stunning recovery from its springtime sell-off of roughly But challenges still lay ahead for Wall Street with one of the largest being the continued threat of Trump s tariffs A great number of of Trump s stiff proposed taxes on imports are right now on pause but they re scheduled to kick into effect in about a week Depending on how big they are they could hurt the market and worsen inflation Congress is also debating proposed cuts to tax rates and other measures that could send the U S administration s debt spiraling higher which could push inflation upward That in turn could mean higher interest rates which would hurt prices for bonds stocks and other investments Despite such challenges strategists at Barclays say they re seeing signals of euphoria emerging among specific investors The strategists say a measure that tries to show how much excess optimism is in the sector is not far from the peaks seen during the meme stock craze that sent GameStop to market-bending heights or to the dot-com bubble at the turn of the millennium Other signals are also indicating exuberance in the industry such as demand for what are known as blank-check companies that hunt for privately held companies to buy When too much optimism is in the region it can inflate stock prices to too-high levels in what s called a bubble Of program industry bubbles are infamously challenging to predict and can endure far longer than anticipated before correcting according to the Barclays strategists led by Stefano Pascale and Anshul Gupta In the bond sector Treasury yields rose following particular mixed reports on the U S financial market One declared U S employers were advertising more job openings at the end of May than the month before and than economists expected That could be an encouraging signal for a job sector that had been appearing to settle into a low-hire low-fire state Separate reports on U S manufacturing were more mixed One from the Institute for Supply Management commented U S manufacturing activity shrank again in June but not by as much as the month before Customers do not want to make commitments in the wake of massive tariff uncertainty one survey respondent in the fabricated metal products industry noted A separate assessment from S P Global suggested manufacturing production returned to advancement in June after three months of declines The yield on the -year Treasury rose to from late Monday after erasing an earlier modest loss from the morning The two-year Treasury yield which more closely tracks expectations for what the Federal Reserve will do with its main interest rate rose more sharply to from Better-than-expected details on the economic system could give the Fed more reason to stay on pause with interest rates after it halted its cuts to rates at the start of this year Fed Chair Jerome Powell declared again on Tuesday that he wants to wait for more evidence about how much Trump s tariffs will affect the market and inflation before resuming cuts to interest rates That s despite Trump s angry insistences lately that Powell and the Fed act more rapidly to give the market a boost through lower rates In stock markets abroad indexes were mixed in Europe and Asia Japan s Nikkei fell and South Korea s Kospi rose for two of the larger moves AP Writers Teresa Cerojano and Matt Ott contributed Source
