Wall Street Ends First Day of Second Half with Mixed Signals

U.S. stocks closed in mixed directions on the first trading day of the second half of 2025, as investors rotated away from tech stocks and into other sectors. The Dow Jones rose notably, while the S&P 500 and Nasdaq declined. Investors have been closely watching developments around President Donald Trump’s new fiscal and tax package, along with statements from Federal Reserve Chair Jerome Powell. The S&P 500 fell by 0.12%, and the Nasdaq dropped 0.82%. Meanwhile, the Dow Jones surged by 438 points, or 0.99%. Investors are shifting focus from tech giants like Nvidia and Microsoft to more stable sectors such as healthcare. Anthony Saglimbene, chief investment strategist at Ameriprise, told CNBC that momentum-driven trades tied to AI and tech may be losing steam. Tesla shares slumped after Trump called for a review of subsidies granted to Elon Musk’s companies via his Truth Social platform. Musk responded by calling Trump’s bill ‘absolutely crazy and destructive.’ The bill was approved by the Senate on Tuesday and now moves to the House for further debate. Earlier in the day, Powell confirmed during an ECB panel in Portugal that the Fed would likely have cut rates again if tariffs hadn’t been imposed.