Stock Market Summary – July 01, 2025

Stocks ended Monday’s session with all three major averages up, seeing S&P 500 hitting another record close of 6,204.95, Dow Jones Industrial Average adding 275.50 points, and Nasdaq Composite closing up 0.47%. Notably, clean energy stocks saw a boost after a tax on solar and wind projects was removed from the Senate version of the One Big Beautiful Bill Act. NextEra Energy shares rose 5%, while AES shares rose 2%.

In other financial news, the Senate’s deliberations over President Trump’s spending and tax bill highlight changes that are likely to impact Americans’ finances. The bill, among other amendments, plans to remove the $10,000 cap on state and local tax deductions, known as SALT, and raise it to $40,000 starting in 2025. Child tax credit is set to increase to $2,200 in 2025 and would be indexed for inflation from 2026 onward. Other notable elements include Medicaid cuts and reduced food stamp benefits. The Senate schedule will also introduce the “Trump accounts” for child savings and tax deductions for car loan interest, overtime pay, and tip income.

Despite market volatility in 2025, all of billionaire investor Ken Griffin’s hedge funds at Citadel have posted positive returns. The multistrategy Wellington fund, Citadel’s largest, saw a 2.5% gain during the first half of the year, while the tactical trading fund increased by 6.1%.

Further, Amazon CEO Andy Jassy expressed optimism about the company’s Project Kuiper initiative to provide reliable internet to global customers, which Jim Cramer of “Mad Money” also supports. Lastly, Apple’s shares surged after a report suggested the company might use models from Anthropic or OpenAI for its AI-enhanced Siri.

In the stock market news today, a proposed rule change by The Centers for Medicare & Medicaid Services led to a decrease in shares of diabetes tech stocks. Tandem Diabetes Care and Beta Bionics fell by 4% and 6% respectively, while shares of Dexcom also took a hit, losing around 4% in value. Insulet shares went down by 4% as well.

Tesla’s stock fell by 5% after President Trump suggested a review of subsides for Tesla CEO Elon Musk’s companies as a way to cut costs. The electric vehicle maker had been criticising the president’s tax-and-spending bill.

Shares of defense contractor AeroVironment dropped about 8% after the firm announced its intention to issue offerings of $750 million in common stock and $600 million in convertible senior notes due 2030. Similarly, GE Vernova, an energy equipment maker, saw its stock fall by 7% following news that it’s considering selling off Proficy, its industrial software business.

On the more positive side, shares of toy manufacturer Hasbro surged by 5%. Investment bank Goldman Sachs upgraded the company’s stocks from a neutral to a buy rating. Also experiencing an uptick were Kontoor Brands and Hyatt Hotels, whose shares jumped 7% and nearly 5% respectively.

Casino stocks also saw a boost with Wynn Resorts and Las Vegas Sands each experiencing an 8% increase after Macau reported a strong rise in gaming revenues.

AQR Capital Management has found success this year, with its two main hedge funds doubling the S&P 500’s returns. The firm’s Apex strategy rallied 11.4% in H1 2025, and its long-short Delphi equity fund saw a 11.6% gain.

Meanwhile, US Fed Chair Jerome Powell admitted that the Federal Reserve would have already eased its monetary policy if not for the Trump administration’s tariff plan. The central bank continues to maintain its key borrowing rate at the 4.25% to 4.5% range, despite mounting pressure from the White House.