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S&P 500 down 0.04%, Nasdaq down 0.16%, Dow up 0.43%

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Tesla slips as Denmark, Sweden sales drop; Trump-Musk feud

(Updates with market open prices)

By Sruthi Shankar and Nikhil Sharma

July 1 (Reuters) - The S&P 500 and Nasdaq indexes inched

down on Tuesday as Federal Reserve Chair Jerome Powell stayed

cautious on interest-rate cuts and investors watched a Senate

voting marathon on U.S. President Donald Trump's tax-cut and

spending bill.

The blue-chip Dow gained and was just about 746 points away

from its all-time high touched in December.

The day's moves for the S&P 500 and the Nasdaq

Composite come after the indexes posted record closing

highs on Monday, capping their best quarter in over a year as

hopes for more trade deals and possible rate cuts supported

sentiment.

Powell reiterated the U.S. central bank plans to "wait and

learn more" about the impact of tariffs on inflation before

lowering interest rates, again setting aside Trump's demands for

immediate and deep rate cuts.

The top policymaker has been facing harsh criticism from

Trump to ease monetary policy, with the administration mapping

out the likely plan for naming Powell's replacement for when he

leaves the job next May.

The fate of Trump's "One Big Beautiful Bill" was also in

focus as U.S. senators were still voting on Tuesday on a

potentially long list of amendments to the legislation that is

expected to add $3.3 trillion to the nation's debt pile.

The Republican majority's struggle to pass the bill

exemplifies deep divisions within the party over debt. The bill

aims to partly cover the cost of the tax reductions with cuts to

Medicaid and some food assistance programs for low-income

Americans.

Trump said he was open to moving the July 4 deadline he gave

fellow Republicans in the Senate to get behind the bill, while

Treasury Secretary Scott Bessent said he expects the Senate to

pass the bill by the afternoon.

"This version that we hear about is not necessarily the one

that's going to pass. So you know that's still something that

weighs on investors' minds," said Kim Forrest, chief investment

officer at Bokeh Capital Partners.

Tesla's shares fell 4.5% after a fresh spat between

CEO Elon Musk and Trump over the tax bill, with the president

urging the government efficiency department to review the

subsidies that Musk's companies have received.

Tesla also reported a sales drop for a sixth straight month

in Sweden and Denmark in June.

At 10:17 a.m. ET, the Dow Jones Industrial Average

rose 189.54 points, or 0.43%, to 44,284.31, the S&P 500

lost 2.54 points, or 0.04%, to 6,202.41 and the Nasdaq Composite

lost 32.26 points, or 0.16%, to 20,336.87.

The S&P 500 and the Nasdaq's rise to record highs marked a

stunning recovery in sentiment that was hammered by Trump's

chaotic trade policies and geopolitical tensions, with investors

betting on AI enthusiasm and earnings momentum to keep the bull

run going.

Data showed U.S. job openings increased unexpectedly in May,

suggesting labor market resilience despite trade and economic

uncertainties.

Market focus now shifts to Thursday's nonfarm payrolls

report, which could recaliberate bets for a rate cut as soon as

July.

Money markets are pricing in a 21.2% likelihood for a July

rate cut and see about 64.5 bps worth of cuts by the end of this

year, per LSEG data.

AMC Entertainment Holdings ( AMC ) dropped 6.5% after the

theater chain operator said it would cut its debt by converting

at least $143 million in exchangeable bonds into shares.

Shares of U.S.-based casino operators rose after Macau

reported a rise in June gambling revenue. Wynn Resorts ( WYNN )

gained 7.8%, Las Vegas Sands ( LVS ) was up 6.5% and MGM Resorts

International ( MGM ) added 4.5%.

Advancing issues outnumbered decliners by a 1.28-to-1 ratio

on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq.

The S&P 500 posted 14 new 52-week highs and no new lows

while the Nasdaq Composite recorded 46 new highs and 42 new

lows.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Devika

Syamnath)