Wall Street Wavers as Trade Talks and Tax Bill Stir Concerns

U.S. stock futures took a downturn on Tuesday after Wall Street indexes hit record peaks, with investors remaining cautious over ongoing U.S. trade discussions and a Senate voting session concerning President Donald Trump's tax and spending legislation.

Both the S&P 500 and the Nasdaq Composite notched record closing highs on Monday, culminating their strongest quarter in over a year. This optimism was spurred by anticipations of new trade deals and potential interest rate cuts. On Tuesday, U.S. senators were still voting on comprehensive amendments to Trump's fiscal package, which could significantly impact the nation's debt, adding to investor uncertainty.

Amid these developments, Tesla's shares witnessed a 4.7% drop premarket, following a dispute between CEO Elon Musk and Trump over the tax bill. Meanwhile, economic stakeholders are closely observing data from S&P Global and ISM regarding manufacturing activity, job openings, and upcoming comments from Fed Chair Jerome Powell for insights into future U.S. monetary policy direction.

(With inputs from agencies.)