Dow jumps 400 points, S&P 500 closes flat to start new quarter as investors rotate out of tech

The Dow Jones Industrial Average rose on Tuesday.

The blue-chip index advanced 400.17 points, or 0.91%, to close at 44,494.94. By contrast, the S&P 500 ticked 0.11% lower, finishing at 6,198.01, while the Nasdaq Composite slid 0.82% to end at 20,202.89.

— Sean Conlon

Software company Figma officially filed for its initial public offering on Tuesday, looking to build on the momentum new tech stocks are finding in the public markets.

The stock is set to trade on the New York Stock Exchange under the ticker "FIG," according to the filing. The company disclosed $749 million of revenue for 2024, with a net loss of $732.1 million. The company said it did turn a profit in the first quarter of this year.

Figma is part of the CNBC Disrupter 50.

— Jesse Pound

Seventeen stocks in the S&P 500 scored fresh 52-week highs during Tuesday's trading session, and eight secured new all-time highs. Below are some that reached the milestone:

• Royal Caribbean trading at all-time high levels back to its IPO in April 1993
• Cardinal Health trading at all-time highs back to its IPO in 1983
• CrowdStrike trading at all-time highs back to its IPO in June 2019
• Intuit trading at all-time high levels back to its IPO in 1993
• Seagate trading at all-time highs back to its IPO in December 2002
• Ecolab trading at all-time highs back to its IPO in 1957

— Christopher Hayes, Sean Conlon

Corporate treasuries have surpassed ETFs in bitcoin buying for a third consecutive quarter as more companies try to benefit from the MicroStrategy playbook in a more crypto-friendly regulatory environment.

Public companies acquired about 131,000 coins in the second quarter, growing their bitcoin balance 18%, according to data provider Bitcoin Treasuries. ETFs showed an 8% increase or about 111,000 BTC in the same period.

Strategy is still the main behemoth in the bitcoin treasury game, but the market may see a segmentation of leveraged bitcoin equities, with different company profiles offering diversified risk-reward profiles, according to Ben Werkman, chief investment officer at Swan Bitcoin.

"It's going to be very hard to catch Strategy's scale," he said. "They're going to be the preferred landing spot for institutional capital because of the deep liquidity around their equity, while these smaller equities are going to be really good risk returns for retail investors and smaller institutions that want more of that upside."

For more, read the full story here.

— Tanaya Macheel

Goldman Sachs' overall optimistic view of the machinery sector has the firm raising its outlook on Oshkosh Corp. stock.

Goldman upgraded the industrial technology stock to buy from neutral on Monday, and raised its price target to $131 per share from $124. Goldman's forecast implies more than 15% upside from Monday's 113.54 close.

"Used construction inventories are declining [year-over-year] for the first time since December 2022, while the new equipment destock is more than halfway complete," analyst Jerry Revich said. "Meanwhile, margin expectations now embed tariff headwinds and valuations appear reasonable on mid-cycle earnings."

— Brian Evans

Kontoor Brands shares rallied on Tuesday after Goldman Sachs added the apparel stock to its conviction list.

The bank said the Wrangler parent has "strong brand momentum" with an "attractive growth opportunity." Specifically, the firm pointed out the company's acquisition of Helly Hansen, which Goldman said helps diversify the portfolio.

Tuesday's climb offers a reprieve for the struggling stock. Shares have dropped more than 17% in 2025, a turn from the two strong years that came before.

— Alex Harring

On Tuesday, Senate lawmakers narrowly passed President Donald Trump's tax-and-spending bill, following days of heated negotiations.

Vice President JD Vance was the tiebreaker, resulting in a final vote of 51-50. Republican Senators Thom Tillis, N.C., Rand Paul, Ky., and Susan Collins, Me. voted against the measure, breaking with the party.

The bill goes back to the House as lawmakers hurry to get it to Trump's desk for signing before a July 4 deadline.

Read more from CNBC's Erin Doherty and Christina Wilkie about the progress of Trump's bill here.

— Darla Mercado

Check out the stocks making big moves in midday trading Tuesday:

• Diabetes tech stocks — The Centers for Medicare & Medicaid Services is proposing a rule change that could change the reimbursement rates for continuous glucose monitors and insulin pumps. The news sent shares of diabetes tech stocks lower. Tandem Diabetes Care and Beta Bionics tumbled 4% and 6%, respectively, while Dexcom shares shed nearly 4%. Insulet shares were also down 4%.
• Progress Software — The business application software maker tumbled 11% after reporting mixed second-quarter results. Revenue came in at $237.4 million, shy of the $237.5 million consensus estimate, per FactSet. Its adjusted earnings were $1.40 per share, above the $1.30 per share expected from analysts.
• GE Vernova — The energy equipment maker's stock fell 7% on the heels of a report that the company was considering a potential sale of Proficy, its industrial software business. GE Vernova is working with financial advisors and reaching out to publicly traded companies and private equity firms, Bloomberg reported, citing people familiar with the matter.

Read the full list here.

— Fred Imbert

Although Federal Reserve Chair Jerome Powell said last week that he expects policymakers to remain on hold until there's more clarity on the impact of President Donald Trump's tariffs on prices, the central bank may look to cut interest rates if there's a downturn in the labor market.

"Occam's razor suggests that inflation is already stuck above target, with risks to the upside from tariffs over the next several months," wrote economist Aditya Bhave in a Tuesday note. "The Fed might still cut rates this year if there is compelling evidence of labor market deterioration. But the lack of progress on inflation raises the bar for cuts."

Additionally, Bhave anticipates there could be much more impact to the U.S. economy from tariffs ahead.

"An optimistic take on the data would be that the pickup in goods inflation reflects some preemptive price hikes ahead of the tariffs," he continued. "Still, there is most likely a lot more tariff-driven inflation in the pipeline."

— Sean Conlon

The Centers for Medicare and Medicaid Services is proposing a rule change that could change the classification for continuous glucose monitors and insulin infusion pumps. If adopted, the rule would change reimbursement rates and allow patients access to newer technology more quickly.

Canaccord Genuity analyst William Plovanic said he expects Tandem Diabetes Care would be the most hurt by the change, given that about 39% of its estimated 2025 revenue comes from pump sales. The analyst also expects some impact on the businesses of Beta Bionics and Medtronic, and for it to be "neutral to positive" for both Dexcom and Abbott. Due to its current payment structure, Insulet shouldn't be impacted, he said.

Tandem and Beta shares were tumbling 8% and 5%, respectively, while Dexcom shares shed nearly 2%. Insulet shares were down about 2%, while Abbott shares were up slightly.

— Christina Cheddar Berk

New data out Tuesday showed a smaller-than-expected contraction in the manufacturing sector.

The ISM manufacturing index came in at 49.0 for June, above the Dow Jones consensus of 48.6. A reading below 50 indicates contraction.

— Yun Li

EA Sports teased the return of a college basketball video game on Monday, and that could be an early step to another hit for the video game company, according to Deutsche Bank analyst Benjamin Soff.

There has been no official NCAA basketball game since Electronic Arts last edition in 2009, but the revived college football game released last year proved to be a big hit for EA, opening the door for the company to take another stab at a sport where it has struggled.

"EA has not been able to gain traction in the NBA basketball category in a number of years. However, we believe a college basketball game with real athletes presents a new opportunity to reenter the basketball simulation category. The success of EA's new College Football franchise (which re-released last summer after an 11-year hiatus) we think demonstrates (1) EA's ability to bring new sports titles to market, and (2) strong levels of consumer demand for collegiate sports games in a post-NIL world," Soff said in a note to clients.

The game could be a competitive threat to Take-Two Interactive, even if the NBA 2K-maker gets its own college game, Soff said.

"One or both new CBB titles are likely to drive some level of cannibalization with Take-Two's NBA 2K franchise (as was the case with EA's CFB 25 and Madden this past year), especially the first year assuming there is a high level of pent-up demand for college basketball video games with real athletes," the note said.

— Jesse Pound

Stocks traded down on Tuesday morning.

The S&P 500 fell 0.2% just after the opening bell, while the Nasdaq Composite pulled back 0.5%. The Dow Jones Industrial Average fell 24 points, or 0.1%.

— Sean Conlon

Sweetgreen shares are under pressure Tuesday, sliding more than 3%, after TD Cowen cut its rating to hold from buy, and trimmed its price target by $10 to $15. Analyst Andrew Charles said he thinks Sweetgreen shares will trade at a lower multiple, on par with its peers, as it tries to expand into "new, unproven geographies."

According to Charles, sales at Sweetgreen's urban locations that have been open at least a year are declining at a double-digit pace, hurt by plateaued return to office trends and competition. This means newer suburban locations have to pick up the slack. It's possible they will, he said. A rebound in store openings could also build excitement for the chain, but it's hard to say, according to the analyst.

"There is less visibility to the developent story than same store sales, but it would be more impactful to the [long-term] story if our concerns do transpire," Charles told clients in a research note.

Cowen's new price target is less than 1% above where the stock closed Monday.

— Christina Cheddar Berk

Citi Research sees headwinds ahead for DraftKings, but is keeping its bullish position on the stock.

Analyst Steven Sheeckutz kept his buy rating and upped his price target by $3 to $58 to account for the stock's recent multiple expansion, he said. His new price target indicates about 35.2% potential upside for the stock, which has jumped 15.3% year to date.

Sheeckutz noted that DraftKings could be impacted by the impact of New Jersey's and Louisiana's plans to raise taxes on online sports betting, as well as the new delayed date for Missouri's legal sports betting launch.

"Quarter-to-date state data suggests DKNG has seen its hold rate trend higher y/y. However, we still see scope for DKNG to lower its 2025 outlook given the updated Missouri OSB launch timeline (December 2025) and recent state tax hikes," Sheeckutz said, lowering his own 2025 adjusted EBITDA estimate.

"We believe investors will be focusing on the regulatory environment, hold rate improvements, the evolving prediction market landscape, and capital allocation," he added.

— Pia Singh

These are the stocks moving the most in premarket trading:

Tesla — The electric vehicle maker shed 6% after President Donald Trump suggested that the U.S. Department of Government Efficiency look at subsidies for Tesla CEO Elon Musk's companies for potential cost-cutting measures.

Sweetgreen — Shares slid 3% after TD Cowen downgraded Sweetgreen to hold from buy.

Hasbro — The toymaker added 2% following an upgrade to buy from neutral at Goldman Sachs.

Read the full list of stocks moving here.

— Lisa Kailai Han

Shares of Tesla dropped nearly 5% in premarket trading Tuesday after President Donald Trump took aim at Elon Musk amid the CEO's criticism of his tax and spending bill.

Trump said in a Truth Social post that the Department of Government Efficiency could review funding for rocket launches, satellites and electric car production.

"Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa," Trump said. "No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!"

The falling out between these two powerful men started after Musk expressed opposition to Trump's tax bill, saying it highly jeopardizes the country's fiscal health.

— Yun Li

It's been around 25 minutes since the opening bell, and European shares are struggling to gain momentum.

The pan-European Stoxx 600 was last seen trading around 0.1% higher, but the index has been wavering between that gain and the flatline since the session began.

Most sectors are trading in the green, with utilities stocks leading industry gains on a rise of around 1%.

Looking at major bourses, only the FTSE 100 — last seen up by 0.2% — is trading in positive territory.

— Chloe Taylor

Asia-Pacific markets traded mixed Tuesday as investors assessed the record gains on Wall Street and the global impact of U.S. President Donald Trump's tariff policies, as his 90-day tariff reprieve is set to expire next week.

Japan's Nikkei 225 benchmark fell 1.24% to end the day at 39,986.33 after hitting an over 11-month high in its previous session, while the broader Topix index declined by 0.73% to settle at 2,832.07.

In South Korea, the Kospi index rose 0.58% to close at 3,089.65, while the small-cap Kosdaq added 0.28% to 783.67.

Over in Australia, the S&P/ASX 200 ended the day flat at 8,451.10.

Meanwhile, India's benchmark Nifty 50 and BSE Sensex were flat as of 1 p.m. Indian Standard Time.

Hong Kong markets are closed for a public holiday.

— Amala Balakrishner

Goldman Sachs pulled forward its Federal Reserve rate-cut outlook to September, a tweak from its earlier call for a December reduction.

"The very early evidence suggests that the tariff effects look a bit smaller than we expected, other disinflationary forces have been stronger, and we suspect that the Fed leadership shares our view that tariffs will only have a one-time price level effect," wrote David Mericle, chief U.S. economist, in a Monday report.

He added that while the labor market still appears healthy, it's become harder to find a job. "Both residual seasonality and immigration policy changes pose near-term downside risk to payrolls," Mericle wrote.

Goldman is penciling in three 25 basis point cuts in September, October and December, along with two more quarter-point reductions in 2026. That results in a terminal rate forecast of 3% to 3.25%, down from the firm's earlier call for 3.5% to 3.75%.

The current target range for the federal funds rate is 4.25% to 4.5%.

—Darla Mercado

Here are the companies making headlines after hours.

• AeroVironment — Shares dropped more than 6% after the drone maker said it plans to issue $750 million in common stock, as well as $600 million in convertible senior notes due 2030, to repay indebtedness.
• Progress Software — Shares fell 3% after the business application software maker reported second-quarter sales that fell short of expectations. Progress Software reported sales of $237.4 million, lower than the FactSet consensus estimate $237.5 million. Adjusted earnings of $1.40 per share, however, topped the expected $1.30 earnings per share.
• Circle Internet Group — The stablecoin issuer rose more than 1% after Reuters reported it has submitted a bank charter application to the Office of the Comptroller of the Currency.

— Sarah Min

U.S. equity futures ticked lower at the start of trading Monday evening.

Futures tied to the Dow Jones Industrial Average slipped 59 points, or 0.1%. S&P 500 futures dropped 0.1%, as did Nasdaq 100 futures.

— Tanaya Macheel