Tonight’s Highlights | Powell Speaks in Portugal, Tesla Faces New Controversy

During tonight’s U.S. trading session, markets await Federal Reserve Chair Jerome Powell’s public remarks from Portugal.

 

Meanwhile, as the U.S. tax cut bill nears a critical Senate vote, renewed tensions between President Trump and the world’s richest man are impacting the recently record-high U.S. stock market.

As of this report, Dow Jones futures (2509 contract) fell 0.09% pre-market, S&P 500 futures dropped 0.28%, and Nasdaq 100 futures declined 0.40%. A key focus for tonight’s market is the rekindled conflict between President Trump and Elon Musk, causing Tesla’s stock to slide nearly 6% pre-market on Tuesday.

From an industrial policy perspective, Musk’s discontent is tied to the Senate’s advancing tax cut bill. In last-minute revisions, the Senate version adopted a tougher-than-expected stance on clean energy.

 

For example, the legislation proposes ending EV subsidies by September 30 and terminating residential solar tax credits this year. Beyond subsidy cuts, the bill threatens additional taxes on solar and wind projects and includes last-minute incentives for fossil fuels, listing coal as a key mineral for manufacturing tax credits.

 

The bill, debated and voted on overnight, still faces divisions. With only three Republican senators’ defections tolerable, roughly eight remain opposed to varying degrees.

 

Meanwhile, Fed Chair Powell, under White House pressure, is in Sintra, Portugal, for the ECB’s annual forum. Tonight, as U.S. markets open, Powell will join ECB President Lagarde, Bank of England Governor Bailey, Bank of Japan Governor Ueda, and Bank of Korea Governor Rhee in a panel discussion.

Company Events

Microsoft Sales Chief Takes Two-Month Leave Amid Looming Layoffs  

 

Microsoft confirmed Chief Commercial Officer Judson Althoff will take an eight-week leave, returning in September, aligning with the company’s fiscal year-end on Monday. Market rumors suggest Microsoft plans to cut thousands more jobs, with the sales division, largely spared in May’s 6,000 layoffs, now in focus.

 

Oracle Secures $30 Billion Annual Contract  

 

Oracle’s stock hit a record high after the database giant announced a $30 billion cloud computing contract, nearly triple its current infrastructure business revenue.

 

U.S. Court Orders Argentina to Transfer 51% of YPF Shares  

 

CCTV News reports that a New York Southern District Court judge ruled Monday that Argentina must transfer 51% of YPF shares to two former minority shareholders as part of 2012 nationalization compensation. President Milei vowed to appeal through all legal avenues to protect national interests.

 

Market Expects Tesla Q2 Deliveries to Decline Again  

 

For Tesla’s Q2 delivery and production data, due Wednesday (July 2), Visible Alpha’s survey of 23 analysts predicts 394,380 vehicle deliveries, down over 11% year-over-year.

 

Wolfspeed Surges Over 80% Pre-Market on Restructuring Plan  

 

Wolfspeed, a U.S. silicon carbide semiconductor firm facing bankruptcy risks, soared over 80% pre-market Tuesday. The company announced a debt restructuring plan after Monday’s close, aiming to complete it by Q3’s end, cutting 70% of its debt (~$4.6 billion) and reducing interest expenses by 60%.