Dow Futures Rise as Market Rally Holds Strong; Tesla Deliveries, Trump Budget Bill in Focus

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: ED Carson

U.S. stock futures rose modestly Sunday evening, continuing a powerful rally that sent the S&P 500 and Nasdaq to record highs last week. Dow Jones futures climbed 0.6%, while S&P 500 and Nasdaq 100 futures gained 0.4% and 0.5% respectively. Investors are preparing for a busy holiday-shortened week that features key economic data, corporate deliveries, and political developments.

One of the major developments over the weekend came from Canada, which unexpectedly rescinded its planned digital services tax targeting U.S. tech giants, following the Trump administration’s decision to suspend trade talks. The move eased fears of escalating trade tensions, providing a lift to tech-heavy indexes.

The stock market ended last week on a high note, shrugging off geopolitical and economic concerns. The Dow Jones Industrial Average jumped 3.8% for the week, its strongest performance since March, while the S&P 500 rose 3.4% and the Nasdaq composite rallied 4.25%. The small-cap Russell 2000 added 3%, though it met resistance at the 200-day moving average.

Treasury yields fell, with the 10-year dipping nine basis points to 4.28%. Meanwhile, U.S. crude oil prices tumbled 11.3% to $65.52 a barrel, reflecting demand concerns and inventory build-up.

Tesla (TSLA) is set to report second-quarter global vehicle deliveries on Wednesday, July 2. While the company has not issued official guidance, a Tesla-compiled analyst consensus expects around 385,000 vehicles, though many updated forecasts suggest a range of 350,000–370,000.

This follows the company's limited robotaxi launch in Austin, Texas, which featured around 10 Model Y vehicles operated with safety monitors and remote support. While the trial drew headlines, technical and operational hiccups have tempered expectations.

Tesla stock had an eventful week, surging after the robotaxi news before giving back most of its gains. It closed the week up just 0.5% at 323.79, and remains within a broad consolidation pattern.

CEO Elon Musk criticized the Senate’s version of President Trump’s budget bill over the weekend, calling the proposed cuts to green energy incentives “utterly insane.” In a post on his platform X, Musk warned that eliminating EV tax credits and green subsidies would “destroy millions of jobs” and damage America’s strategic energy future.

The current Senate bill proposes ending the $7,500 EV tax credit on September 30, earlier than the House’s December 31 deadline. This could significantly impact Tesla’s sales outlook and broader adoption of electric vehicles. The bill may come to a final vote in the Senate as early as Monday.

Several Chinese electric vehicle companies, including XPeng (XPEV), Nio (NIO), Li Auto (LI), and Xiaomi (XIACY), will release Q2 delivery figures on July 1. Xiaomi’s recently launched YU7 crossover, dubbed a "Model Y killer," has already received 200,000 pre-orders within minutes of its launch, pushing Xiaomi stock sharply higher.

Investors are also watching Thursday’s June U.S. jobs report closely. Signs of further labor market weakness could reinforce expectations for a Fed policy shift later this year.

Among ETFs, the VanEck Vectors Semiconductor ETF (SMH) soared 7% last week, while the ARK Innovation ETF (ARKK), heavily exposed to Tesla, rose 3%. The iShares Expanded Tech-Software Sector ETF (IGV) added 2.5%, and the Innovator IBD 50 ETF (FFTY) climbed 2.8%. In contrast, the Energy Select SPDR ETF (XLE) slumped 4.2%.

With the S&P 500 and Nasdaq at record highs, investors are advised to remain heavily invested but cautious. Many leading stocks have already made substantial moves, though opportunities for incremental buys or repositioning still exist. Watchlists and exit strategies should be updated regularly, and investors should remain nimble in the face of headline risks, especially regarding politics and trade.

Stay tuned to The Big Picture and IBD Live for ongoing analysis and stock market insight.