US Equity Indexes Mixed After Powell Blames Tariffs for Monetary Policy Pause, Job Openings Surge

01:24 PM EDT, 07/01/2025 (MT Newswires) -- US equity indexes traded mixed in midday trading on Tuesday as Federal Reserve Chair Jerome Powell blamed punitive import tariffs for the continued pause in monetary policy easing and as government bond yields jumped after job openings rose more than forecast.

The Nasdaq fell 0.6% to 20,252.5 after hitting an all-time high of 20,418.31 on Monday. The S&P 500 slipped 0.1% to 6,200.7, trading close to its new peak of 6,215.08 on Monday. The Dow Jones Industrial Average rose 0.8% to 44,454.9, heading toward its record of 45,073.63.

All sectors except for communication services, technology, and utilities rose intraday. Materials and healthcare led the top gainers.

Federal Reserve Chair Jerome Powell said President Donald Trump's sweeping tariffs prompted the central bank to hold off on cutting interest rates this year. While inflation has remained relatively stable, the Fed expects "to see over the summer some higher readings, but we're prepared to learn that it can be higher or lower or later or sooner than we expected," Powell said.

In US economic news, US job openings rose to 7.769 million in May according to the Bureau of Labor Statistics, above the 7.3 million openings expected in a survey compiled by Bloomberg and larger than the 7.395 million openings reported in April. The May level represents 4.6% of total employment, up from 4.4% in April, but down from 4.8% a year earlier.

The ISM manufacturing index rose to 49.0 in June from 48.5 in May, led by gains in production and prices. The S&P Global manufacturing PMI was revised upward to 52.9 in June from the flash estimate of 52.0 and the 52.0 print in May. The Dallas Federal Reserve's monthly general business services index improved to minus 4.4 in June from minus 10.1 in May, but still indicated contraction.

Most Treasury yields rose, with the 10-year up 2.9 basis points to 4.26% and the two-year jumped 5.6 basis points to 3.78%.

On the trade front, the European Union is open to a deal with the US that includes a 10% universal tariff, but is pushing for exemptions and quotas to ease US tariffs of 25% on autos and 50% on steel and aluminum, Bloomberg reported.

"Trump appears to be recycling his signature escalate-to-deescalate tactic, much like he did with China," Vantage Markets analyst Hebe Chen said. "With the July 9 deadline approaching, more bluff and bluster should be fully expected."

In company news, Tesla's (TSLA) investors are concerned that renewed tensions between Chief Executive Elon Musk and Trump could pose regulatory headwinds to the electric vehicle maker's autonomous-driving journey, Wedbush Securities said Tuesday. In a Truth Social post, Trump accused Musk of receiving "more subsidy than any human being in history," adding that the Department of Government Efficiency should "take a good, hard look at this? BIG MONEY TO BE SAVED!!!"

Shares of Tesla dropped 4.7% intraday, heading for the sixth straight day of declines.

West Texas Intermediate crude oil futures climbed 0.9% to $65.67 a barrel.

Gold futures jumped 1.4% to $3,353.20 per ounce.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.