Traders work at the New York Stock Exchange on June 25, 2025.
NYSE
U.S. equity futures fell early Tuesday to kick off the second half of 2025 after the S&P 500 notched another record to close out a stunning quarter.
Futures tied to the Dow Jones Industrial Average slipped 45 points, or 0.1%. The S&P 500 futures declined 0.2%, along with the Nasdaq-100 futures.
Shares of electric vehicle maker Tesla fell in the premarket after President Donald Trump suggested in a post on Truth Social that the Department of Government Efficiency (DOGE) should look into the government subsidies that CEO Elon Musk’s companies have received.
Musk has criticized Trump’s sweeping “big, beautiful bill,” calling it “utterly insane and destructive” over the weekend. In response to the president’s recent post, Musk wrote in a post on X: “I am literally saying CUT IT ALL. Now.”
The broad market S&P 500 advanced 0.5% on Monday, posting another record close, while the tech heavy Nasdaq Composite also rose to fresh all-time highs, gaining 0.5%. The blue-chip Dow climbed 275.50 points, or 0.6%.
Monday’s moves came after Canada walked back its digital services tax in an attempt to facilitate trade negotiations with the U.S. Ottawa’s move to rescind the new levy comes after Trump said on Friday he would be “terminating ALL discussions on Trade with Canada.”
Traders are hoping for deals between the U.S. and its trading partners, as Trump’s 90-day reprieve on his steepest tariffs is set to expire next week.
Stocks have made an impressive comeback after suffering steep declines in April, after Trump’s sweeping tariff policy pushed the S&P 500 near bear market territory. The major averages have since made a sharp turnaround, with the broad market index closing the second quarter with a 10.6% gain and the Nasdaq up nearly 18% in the period.
Though traders now head into the second half of the year with stocks at record highs, some remain optimistic the market could surge even higher in the months ahead.
“We think this is going to be a broader recovery,” Mike Wilson, chief U.S. equity strategist and chief investment officer at Morgan Stanley, said Monday on CNBC’s “Closing Bell.”
“I think with the Fed cutting in the second half of this year or next year, we can see a rolling recovery – because now there’s quite a bit of pent-up demand, particularly in those interest rate sensitive parts of the market,” he added. Those corners of the market include manufacturing and housing, the strategist said.
Fed Chair Jerome Powell is scheduled to speak at 9:30 a.m. ET at the European Central Bank’s Forum on Central Banking in Portugal. Powell said last week that he expects policymakers will keep monetary policy on hold until there’s more clarity on the impact of tariffs on prices.
Traders are also looking ahead to the S&P Global Purchasing Managers’ Index at 9:45 a.m. ET, which will give investors a read on the activity in the manufacturing sector, as well as the ISM manufacturing report at 10 a.m. The Job Openings and Labor Turnover Survey (JOLTS) will also be released Tuesday morning.
