By Joe Wallace and Roshan Fernandez

Stocks slipped Wednesday, a day after Republicans squeaked President Trump's tax-and-spending bill through the Senate. The bill now returns to the House.

On trade, the president said he won't extend a July 9 deadline to resume higher tariffs, saying Japan and other countries were spoiled. For now, though, investors aren't too flustered by the risk of another huge rise in tariffs on America's trading partners. After edging down Tuesday, and drifting lower early Wednesday, the S&P 500 remains not far off record highs.

The European Union's top trade official said this week he would seek meetings with counterparts in Washington on Wednesday and Thursday in an attempt to strike a deal before Trump's deadline.

Data from ADP, a day ahead of the widely watched nonfarm payrolls report, showed an unexpected drop in U.S. private-sector jobs last month. The group's chief economist said firms showed "a hesitancy to hire and a reluctance to replace departing workers."

In recent trading:

The WSJ Dollar Index rose. The gauge, which tracks the dollar against a basket of currencies, has fallen for six of the past seven trading days, sagging to three-year lows.

European stock markets were broadly higher.

Ten-year Treasury yields climbed to roughly 4.3%.

U.K. bond yields jumped on concerns about the fiscal outlook, after the Labour government watered down welfare reforms.

Japan's Nikkei 225 fell after Trump floated the prospect of 30% or 35% tariffs on Japanese goods.

Write to Joe Wallace at joe.wallace@wsj.com and Roshan Fernandez at roshan.fernandez@wsj.com

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

July 02, 2025 09:43 ET (13:43 GMT)

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