U.S. stock futures inched higher early Wednesday, July 2, 2025, reflecting cautious optimism as investors digested a tech sector pullback, a volatile legislative backdrop, and upcoming jobs data. The Dow Jones Industrial Average showed strength, buoyed by healthcare gains, while the Nasdaq continued to struggle under tech pressure.
Stock indexes open mixed
- Dow Jones Industrial Average: Futures up 69 points (0.2%)
- S&P 500: Futures up 0.1%
- Nasdaq 100: Futures up 0.1%
On Monday, the Dow surged 400 points while the Nasdaq Composite lost 0.8%, showing a sharp divergence as investors rotated out of high-growth tech names.
Tech stocks slide as healthcare leads
The information technology and communications services sectors of the S&P 500 both dropped over 1% Tuesday. Notable losers included Nvidia, Palantir, and AMD. Meanwhile, healthcare stocks rose, with Amgen, Johnson & Johnson, and UnitedHealth pushing the Dow higher.
Key legislation and market reaction
President Donald Trump’s sweeping tax-and-spending bill passed the Senate Tuesday by a narrow margin. The measure now returns to the House, where GOP dissent remains. Analysts expect any fiscal resolution to add temporary volatility to bond markets and equities alike.
“We expect to see more volatility in fixed income, even once they get the bill passed,” said Jose Rasco of HSBC Private Banking. “That’s going to bleed over into the equity markets.”
Still, Rasco remains optimistic: “Once these things get resolved and once the Fed gets back in gear, there’s a lot of upside here.”
Market-moving events to watch
- ADP private payrolls report: Due Wednesday morning. Economists expect a jump to 120,000 jobs added in June, up from 37,000 in May.
- June jobs report: Scheduled for Thursday. This is the week’s biggest data release and will shape short-term Fed expectations.
- Tariff tensions: Trump’s temporary pause on major tariffs is set to expire next week, adding further uncertainty.
S&P 500 signals bullish momentum
Despite short-term jitters, the S&P 500 formed a “golden cross” on Tuesday—a technical indicator where the 50-day moving average climbs above the 200-day average. Historically, this pattern has preceded gains in 9 of the last 11 instances.
However, it’s not foolproof. In May 1990, a golden cross was followed by a 12% drop, and in 2019, the pattern preceded the COVID crash.
Tesla, Verint move on headlines
- Tesla (TSLA): Rose 1.29% in early trading after a sharp 5.3% drop Monday amid renewed tensions between Elon Musk and President Trump.
- Verint Systems (VRNT): Spiked 12% after reports surfaced that it is in acquisition talks with private equity firm Thoma Bravo.
Short sellers hit hard in Q2 rally
According to S3 Partners, short sellers lost $300 billion since markets bottomed in April. The biggest losses came from bearish bets against technology, consumer discretionary, and industrial stocks—especially Nvidia, Tesla, and Microsoft.
International markets: India slips on tariff uncertainty
The Sensex and Nifty 50 in India both closed lower Wednesday, dragged down by weakness in financial and infrastructure stocks. Tariff worries and global headwinds continued to weigh on emerging market sentiment.
- Sensex: -0.34%
- Nifty 50: -0.35%
What’s next?
Volatility is likely to persist in the short term as markets await clarity on U.S. fiscal policy and labor conditions. While investor focus remains on tech stocks and job numbers, other sectors like healthcare and materials are showing relative strength.
With multiple cross-currents at play—ranging from tariffs and Fed policy to labor data—traders may want to stay flexible and avoid overexposure to any one sector.
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