Dow Rises Amid Tech Sell-Off, Trade Deadline Looms

On July 1, 2025, U.S. stock markets closed mixed with the Nasdaq and S&P 500 declining due to a sell-off in overbought large-cap tech stocks, while the Dow Jones Industrial Average rose sharply, supported by gains in economically sensitive sectors. The NYFANG index, tracking major tech stocks, fell 1.8%, reflecting a significant unwind of recent tech rallies amid concerns over market concentration. Investor optimism was bolstered by President Trump’s statement that he would not extend the July 9 deadline for global trade negotiations, although trade talks with Japan remain challenging with potential tariffs looming. The Senate’s approval of President Trump’s sweeping tax package sparked debate over its stimulative benefits versus its multitrillion-dollar cost. Tesla shares dropped sharply following renewed tension between CEO Elon Musk and President Trump, who threatened to withdraw federal subsidies from Musk’s companies. Economic data showed unexpected growth in May job openings and a steady manufacturing PMI, supporting Federal Reserve Chair Jerome Powell’s cautious stance on near-term rate cuts.