The Nasdaq and the S&P 500 closed lower on Tuesday, dragged down by weakness in large-cap tech stocks, while the Dow ended higher in a volatile day marked by seasonally low liquidity.

Market Snapshot

Dow Jones Industrial Average rose 400.17 points, or 0.91%, to 44,494.94. The S&P 500 lost 6.94 points, or 0.11%, to 6,198.01 and the Nasdaq Composite lost 166.84 points, or 0.82%, to 20,202.89.

Market Movers

Tesla - Tesla fell 5.3%. CEO Elon Musk criticized Trump's bill, calling it "utterly insane and destructive," while the president suggested that the Department of Government Efficiency (DOGE)--the department Musk helped run until the end of May--should look into his companies' government subsidies.

Nvidia, AMD, Broadcom - Chip major Nvidia’s shares were declining on Tuesday following six consecutive sessions of gains. It lost 2.97% to settle at $153.30. Other chip stocks were also lower. AMD fell 4.1%, while Broadcom slipped 4%.

Meta - Meta declined 2.6%. The parent company of Facebook and Instagram rose 0.6% on Monday to close at a record high of $738.09. CEO Mark Zuckerberg announced a new " Superintelligence" division within the company, which will house Meta's fundamental AI research team; the team that currently builds the company's Llama models; and the team that develops Meta's AI products, The Wall Street Journal reported, citing an internal memo it viewed that Zuckerberg sent to employees.

Robinhood - Robinhood fell 1.4%, a day after jumping 13% to a record high of $93.63 following the financial-services platform's introduction of a series of new crypto-focused offerings to users in the U.S. and Europe. Included were perpetual crypto futures and tokenized stocks and exchange-traded funds for European Union users, and crypto "staking" and credit-card rewards for those in the U.S. Robinhood has risen 148% this year, according to Dow Jones Market Data.

Coinbase - Coinbase declined 4.3%. The cryptocurrency exchange was the best-performing stock in the S&P 500 during the second quarter, which ended Monday. Coinbase soared more than 106% from April to June, benefiting from a more relaxed regulatory environment under the Trump administration.

Solar Stocks - Sunrun jumped 10.5%, SolarEdge rose 7.2%, and solar and wind stocks soared as Republican legislators stripped an excise tax on renewable energy projects from Trump's bill.

UnitedHealth - The worst S&P 500 stock last quarter was UnitedHealth, which dropped nearly 41%. The company's troubles began in April, when the healthcare company slashed its full-year outlook, sparking a massive selloff. In mid-May, UnitedHealth pulled its guidance entirely, pointing to higher-than-expected medical expenditures, while CEO Andrew Witty resigned the same month due to "personal reasons." UnitedHealth shares gained 4.5% on Tuesday.

Wolfspeed - Wolfspeed soared 98.1% to 79 cents after the chip component maker filed for a prepackaged Chapter 11 bankruptcy as part of a plan to restructure its debt. Wolfspeed expects to emerge from Chapter 11 protection by the end of the third quarter.

Casino Stocks - Las Vegas Sands rose 8.9%, Wynn Resorts gained 8.9%, and MGM Resorts climbed 7.3% higher. The casino operators, which have operations in Macau, jumped after the Chinese gambling region reported that gaming revenue in June rose 19% from a year earlier.

Progress - Progress Software reported fiscal second-quarter adjusted earnings that beat analysts' estimates but revenue that missed. Shares of Progress Software fell 13%. The company also raised earnings forecasts for the fiscal year, and said it was buying Nuclia, a Spanish search start-up.

Market News

US Senate Passes Trump's Sweeping Tax-and Spending Bill, Setting up House Battle

U.S. Senate Republicans passed President Donald Trump's massive tax-and-spending bill on Tuesday by the narrowest of margins, advancing a package that would slash taxes, reduce social safety net programs and boost military and immigration enforcement spending while adding $3.3 trillion to the national debt.

The legislation now heads to the House of Representatives for possible final approval, though a handful of Republicans there have already voiced opposition to some of the Senate provisions. Trump wants to sign it into law by the July 4 Independence Day holiday, and House Speaker Mike Johnson said in a statement that he aimed to meet that deadline.

The measure would extend Trump's 2017 tax cuts, give new tax breaks for income from tips and overtime pay and increase spending on the military and immigration enforcement. It also would cut about $930 billion of spending on the Medicaid health program and food aid for low-income Americans and repeal many of Democratic former President Joe Biden's green-energy incentives.

Powell Confirms That the Fed Would Have Cut by Now Were It Not for Tariffs

Fed Chair Powell said Tuesday that the U.S. central bank would have eased monetary policy by now if not for President Donald Trump’s tariff plan.

When asked during a panel if the Fed would have lowered rates again this year had Trump not announced his controversial plan to impose higher levies on imported goods earlier this year, Powell said, “I think that’s right.”

“In effect, we went on hold when we saw the size of the tariffs and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs,” Powell said at European Central Bank forum in Sintra, Portugal.

Powell’s admission comes as the Fed has entered a holding pattern on interest rates despite mounting pressure from the White House.