Stock Markets Fluctuate Amid Tax Bill Uncertainties and Fed Rate Decisions

In Tuesday's financial markets, the S&P 500 and Nasdaq experienced minor declines as Federal Reserve Chair Jerome Powell maintained a cautious stance on potential interest-rate cuts, amid ongoing investor scrutiny of President Donald Trump's tax bill, which is undergoing a Senate voting marathon.

In contrast, the Dow crept closer to its record high from December, buoyed by hopes for favorable trade deals and possible future rate cuts. Despite Powell's reiteration of the Fed's wait-and-see approach regarding tariff impacts on inflation, President Trump continues to press for aggressive rate cuts, a tension further illustrated by preparations to find Powell's successor.

The Senate struggles over Trump's tax plan, dubbed the 'One Big Beautiful Bill,' raise concerns over U.S. debt, while Tesla shares drop following Musk-Trump tensions and a decrease in sales in Scandinavia. Meanwhile, unexpected increases in U.S. job openings provide some market optimism, steering attention towards the upcoming nonfarm payrolls report which may influence rate cut speculations.

(With inputs from agencies.)