U.S. Indexes Hover at Record Highs Amid Earnings and Rate-Cut Optimism

Barry Adams
01 Jul, 2025
New York City

Wall Street indexes hovered at record highs amid trade talk optimism and rising expectations of a rate cut as early as September.

The S&P 500 index edged down 0.1%, the Nasdaq Composite decreased 0.2%, and the U.S. dollar continued to drift lower against the euro and the pound. 

The S&P 500 index and the tech-heavy Nasdaq Composite advanced in Monday's trading after the Trump administration signaled progress in trade talks with Canada and China. 

Despite the market sentiment's reversal over the last seven weeks, value investors remain on the sidelines amid a weakening economic backdrop, persistent prices, falling consumer sentiment, and a lack of details on trade talks. 

Moreover, investors are concerned that economic growth may decline in the second half of the year due to prolonged inflation as businesses transfer higher costs associated with tariffs to consumers. 

 

U.S. Movers 

Tesla Inc. dropped 5.7% to $299.57 after the U.S. president urged the Department of Government Efficiency to review government subsidies received by the electric vehicle maker. 

Donald Trump urged the DOGE to review the subsidies after Tesla's CEO Elon Musk criticized the latest federal government budget that is expected to increase the current federal deficit of $36 trillion.

Progress Software Corp. declined 3.6% to $61.50 after the business application software developer reported weaker-than-expected second-quarter sales of $237.4 million.

AeroVironment, Inc., plunged 8% to $261.70 after the drone maker said it plans to raise $750 million through the sale of common stock and $600 million in convertible senior notes due in 2030.