U.S. Stock Futures Decline Amid Trump-Musk Feud, Trade Tensions, Tax Bill Deadline

U.S. stock futures declined on Tuesday as investors turned their attention to President Donald Trump's tax and spending bill, which the Senate is racing to finalize before the July 4 deadline. The market pullback followed record highs on Monday and was exacerbated by a renewed public feud between President Trump and Tesla CEO Elon Musk, with Trump criticizing Musk over subsidies and threatening investigations, causing Tesla shares to drop nearly 5%. Amid the legislative rush, lawmakers passed a bipartisan amendment striking down a ban on state AI regulation, a move seen as a setback for tech companies supporting Trump’s original stance. Trade tensions also escalated as President Trump threatened new tariffs on Japan, accusing it of not importing enough American rice, while U.S.-Canada trade talks were ongoing. Additionally, Federal Reserve Chair Jerome Powell prepared to speak at a central banking forum in Europe amid pressure from Trump to quickly lower interest rates, contributing to market caution ahead of key economic data releases, including the upcoming jobs report. Despite these challenges, some optimism remains as the S&P 500 and Nasdaq recorded their best quarterly performances in years, though uncertainty around tariffs and fiscal policy continues to weigh on investor sentiment.