US stock indexes slipped in premarket trading on Tuesday as investors weighed ongoing trade negotiations and uncertainty surrounding President Donald Trump’s sweeping tax and spending bill.
The S&P 500 and Nasdaq Composite closed at record highs on Monday, wrapping up their strongest quarter in over a year. Buoyed by optimism over trade deals and potential interest rate cuts, they had closed at record highs. However, sentiment has turned more cautious.
Markets are closely watching a marathon voting session in the US Senate. Lawmakers are considering a lengthy series of amendments to the president’s bill—legislation expected to add $3.3 trillion to the national debt, raising fresh fiscal concerns.
Trade tensions added to the unease, as President Trump voiced frustration with stalled US-Japan trade talks, while Treasury Secretary Scott Bessent warned that other countries could face sharply higher tariffs by the July 9 deadline, despite ongoing negotiations.
Tesla shares tumbled 4.7% in premarket trading, hit by a renewed clash between CEO Elon Musk and President Trump over the tax bill. The president has called for a review of subsidies for electric vehicle manufacturers. Tesla also reported a sixth consecutive monthly sales decline in Sweden and Denmark in June.
As of the latest premarket data:
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Dow Jones Industrial Average: -0.1%
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S&P 500: -0.2%
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Nasdaq 100: -0.3%
Investors are bracing for potential volatility as political developments unfold.
Tesla Shares Slide as Musk-Trump Rift Deepens Over Tax Bill
Tesla shares are under pressure ahead of the US market open, falling 4.5% in pre-market trading, as tensions escalate between CEO Elon Musk and President Donald Trump over the administration’s proposed tax and spending bill.
Over the weekend, Musk publicly slammed the bill as “utterly insane and destructive,” warning that the latest version would eliminate millions of American jobs and inflict serious long-term strategic harm. He accused the legislation of favoring outdated sectors at the expense of innovative industries, stating:
“It gives handouts to industries of the past while severely damaging industries of the future.”
In response, President Trump has signaled a crackdown on federal subsidies received by Musk’s companies. He reportedly directed the Department of Government Efficiency—which Musk once briefly advised—to reassess support for electric vehicle makers and clean tech firms.
The clash marks a rare public falling-out between two high-profile figures and adds fresh uncertainty for investors already weighing trade tensions and fiscal risks. Tesla’s stock could remain volatile as the political dispute unfolds.
