Daijiworld Media Network – New York
New York, Jul 1: Wall Street stocks edged lower on Tuesday as a political face-off between US President Donald Trump and Tesla CEO Elon Musk spooked investors and sent Tesla shares sharply down. The dip came amid mounting uncertainty over Trump’s proposed tax overhaul bill, which has faced hurdles in Congress.
About 25 minutes into trading, the Dow Jones Industrial Average managed a slight gain of 0.3% at 44,214.87. However, the S&P 500 fell 0.1% to 6,197.55 and the tech-heavy Nasdaq Composite Index dropped 0.3% to 20,312.16, reflecting a cautious mood among investors.
Tesla stock fell by around five percent after Trump lashed out at Musk following his criticism of the sweeping tax proposal, which includes major cuts to clean energy initiatives and social programs. In a retaliatory move, Trump hinted at the possibility of deporting the billionaire entrepreneur and ordered the Department of Government Efficiency (DOGE) to examine Musk’s federal subsidies. The President also warned of potential repercussions against Musk’s ventures, including Tesla and SpaceX.
Elon Musk, who previously served as head of DOGE and was a key donor to Trump’s 2024 campaign, has since distanced himself from the administration. He recently called for the creation of a new political party in opposition to Trump’s policies, fuelling further tensions.
Analysts noted that the standoff had a direct impact on market sentiment. “Tesla is extraordinarily popular with speculative traders,” said Steve Sosnick of Interactive Brokers. “If there's a big drop in that stock, it sort of hurts the mood of the market.”
Market watchers also attributed the early pullback to a natural correction following strong gains seen at the end of the previous quarter, driven by large institutional investments.
Meanwhile, Boeing shares climbed 0.8% after the company appointed Jesus "Jay" Malave as Chief Financial Officer, hiring him from defense giant Lockheed Martin. The aerospace firm also named Stephen Parker as the head of its defense and space division, transitioning from his previous interim role.
As political uncertainty continues to cloud market momentum, investors are closely watching further developments in Congress and the escalating feud between the White House and one of the tech industry’s most high-profile figures.