Wall Street Dips Amid Trade Talk Tensions and Tax Bill Challenges

Wall Street indexes appeared poised for a downturn on Monday following record-setting highs, as investor focus shifted to U.S. trade negotiations and intense debates over President Trump's tax and spending bill in Washington. The S&P 500 and the Nasdaq Composite both reached historic closing levels the previous day, buoyed by optimism surrounding trade deals and impending interest rate reductions.

On Tuesday, U.S. senators continued the arduous process of voting on several amendments to Trump's bill, which could add a staggering $3.3 trillion to the country's debt. The struggle to pass the bill has highlighted deep rifts within the Republican Party, particularly concerning the nation's mounting debt. In an effort to finance tax cuts, the bill proposes reducing Medicaid and food assistance programs for low-income Americans.

Amidst these legislative challenges, Trump's July 4th deadline for Senate approval remains flexible, while Treasury Secretary Scott Bessent anticipates passage of the bill later in the day. Meanwhile, tensions between Tesla's CEO Elon Musk and Trump have escalated, affecting Tesla's stocks. Additionally, concerns over U.S.-Japan trade talks and looming tariff increases further compound investor anxieties.

(With inputs from agencies.)