Market Overview - The Dow Jones Industrial Average increased by 400.17 points, or 0.91%, closing at 44,494.94 [2] - The Nasdaq Composite decreased by 166.84 points, or 0.82%, closing at 20,202.89 [2] - The S&P 500 index fell by 6.94 points, or 0.11%, closing at 6,198.01 [2] - The European Stoxx 50 index declined by 20.81 points, or 0.39%, closing at 5,282.43 [2] - The UK FTSE 100 index rose by 124.37 points, or 0.28%, closing at 8,785.33 [2] - The German DAX index decreased by 236.32 points, or 0.99%, closing at 23,673.29 [2] - The Shanghai Composite Index increased by 13.32 points, or 0.39%, closing at 3,457.75 [2] - The Hang Seng Index fell by 211.87 points, or 0.87%, closing at 24,072.28 [2] Legislative Developments - The U.S. Senate passed a comprehensive tax and spending bill supported by President Trump with a vote of 51 to 50, now awaiting a vote in the House of Representatives [4] - The House Speaker Mike Johnson is working to pass the bill before July 4, but success is not guaranteed [4] Federal Reserve Insights - Federal Reserve Chairman Jerome Powell indicated that the Fed might consider a rate cut in July, depending on evolving data, emphasizing the need for the Fed to remain apolitical [5] International Investment Changes - Russian President Vladimir Putin signed a decree establishing new investment mechanisms for foreign investors, allowing investments from "unfriendly countries" and creating special accounts for transactions [6] Political Developments in Thailand - The Thai Constitutional Court has suspended Prime Minister Prayuth Chan-o-cha amid impeachment proceedings related to alleged constitutional violations [7] Automotive Industry Performance - BYD reported June sales of 382,600 new energy vehicles, a 17.5% increase year-over-year [9] - Leap Motor achieved a record delivery of 48,000 vehicles in June, up over 138% year-over-year [9] - Xpeng Motors delivered 34,600 vehicles in June, marking a 224% increase year-over-year [9] - NIO delivered 24,900 vehicles in June, a 17.5% increase year-over-year [9] - Xiaomi Motors delivered over 25,000 vehicles in June [9]

Core Viewpoint - The article discusses the passage of a comprehensive tax and spending bill in the U.S. Senate, which aims to reduce taxes by $4 trillion over the next decade while cutting at least $1.5 trillion in spending, reflecting a shift from the Biden administration's policies to those favored by the Trump administration [1][3][4]. Group 1: Tax Cuts - The bill plans to implement tax cuts totaling $4 trillion over the next ten years, including various tax exemptions such as overtime pay and tips, while significantly increasing the exemption amounts for estate and gift taxes, with future adjustments based on inflation [4]. Group 2: Spending Cuts - The bill proposes to cut nearly $1 trillion from Medicaid funding by raising eligibility standards and tightening requirements for the Supplemental Nutrition Assistance Program (SNAP), which will increase the age limit for assistance from 54 to 64 years, potentially saving $230 billion over the next decade [5]. - It also aims to eliminate or reduce "green subsidies" introduced during the Biden administration, affecting tax breaks for clean energy projects and electric vehicle purchases [5]. Group 3: Defense Spending and Debt Ceiling - The savings from reduced spending will be redirected to increase military and border security funding, with the Senate version of the bill proposing to raise the federal debt ceiling by an additional $5 trillion [6]. - According to the Congressional Budget Office, this version of the bill is expected to increase national debt by $3.3 trillion over the next ten years [7].

Group 1: Trade Negotiations and Tariffs - President Trump stated he does not plan to extend the July 9 deadline for trade negotiations with various countries, expressing skepticism about reaching an agreement with Japan [1][3] - Trump indicated he could impose tariffs on Japanese imports as high as 30% or 35%, significantly above the previously announced 24% tariff rate [3] Group 2: Legislative Developments - The U.S. Senate passed a comprehensive tax and spending bill, referred to as the "Big and Beautiful" plan, which will be debated and voted on by the House of Representatives [4][5] - The bill aims to extend and upgrade Trump's tax policies from his first term, while also reducing and adjusting spending related to the Biden administration's "Green New Deal" [6] - The proposed legislation plans to reduce taxes by $4 trillion over the next decade and cut spending by at least $1.5 trillion [6][7] Group 3: Market Reactions - Following a public dispute between Trump and Tesla CEO Elon Musk, Tesla's stock fell approximately 7%, resulting in a market capitalization loss of about $54.5 billion [10][11] - Musk criticized the "Big and Beautiful" tax and spending bill, suggesting that if it passes, he would establish a new political party [11] Group 4: Federal Reserve Insights - Federal Reserve Chairman Jerome Powell indicated that Trump's tariff policies have contributed to uncertainty, delaying potential interest rate cuts that could have started in 2025 [12][14] - Powell acknowledged that the current economic outlook remains unstable, and the Fed is in a wait-and-see mode regarding future rate adjustments [14] Group 5: Shipping Index Developments - The European shipping index futures saw a significant increase of 7.80%, attributed to market expectations regarding shipping rates and geopolitical tensions [15][17] - Analysts noted that the shipping market is currently facing oversupply, with weekly capacity expected to rise significantly, which may suppress recovery in spot freight rates [18][19] - Key factors influencing the shipping index include U.S. tariff policies, immediate market conditions, and geopolitical situations, particularly concerning potential conflicts in the Middle East [19]

Core Points - The U.S. Senate passed a comprehensive tax and spending bill on July 1, which has been submitted to the House of Representatives [1] - Three Republican senators voted against the final bill, including Rand Paul from Kentucky, Thom Tillis from North Carolina, and Susan Collins from Maine [1] - The bill was passed with a tie vote of 50-50, with Vice President Vance casting the tie-breaking vote, resulting in a final tally of 51-50 [1]

Core Viewpoint - The U.S. Senate passed a comprehensive tax and spending bill proposed by President Trump, which is now set to be debated and voted on by the House of Representatives [1] Group 1 - The Senate approved the bill with a narrow vote of 51 to 50, with Vice President Pence casting the tie-breaking vote [1] - The bill includes numerous proposed legislative amendments that were voted on during the session [1] - The House of Representatives is expected to debate and vote on the bill on July 2, ahead of a deadline set by Trump for July 4 [1]

Core Points - The U.S. Senate passed a comprehensive tax and spending bill, referred to as the "Big and Beautiful" plan, with a vote of 51 to 50, breaking a tie with the Vice President's vote [2][4] - The bill aims to extend and upgrade Trump's tax policies while reducing and adjusting Biden's "Green New Deal" and welfare spending [4] Tax Cuts - The bill plans to reduce taxes by $4 trillion over the next 10 years and cut at least $1.5 trillion in spending [5] - It includes various tax relief measures, such as exempting overtime pay and tips from taxes, and significantly increasing the exemption amounts for estate and gift taxes, with future adjustments based on inflation [7] Spending Cuts - The "Big and Beautiful" plan will cut nearly $1 trillion from Medicaid funding and raise eligibility standards for recipients [9] - It tightens eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP), raising the age limit for food assistance from 54 to 64, which is expected to save $230 billion over the next decade [11] - The plan also eliminates or reduces tax breaks for clean energy projects and electric vehicle purchases initiated during the Biden administration [11] Increased Military Spending and Debt Ceiling - The savings from reduced spending will be redirected to increase military and border security funding [12] - The Senate version of the bill proposes to raise the federal debt ceiling by an additional $5 trillion [12] - According to the Congressional Budget Office, this version of the bill will increase national debt by $3.3 trillion over the next ten years [14]

Core Viewpoint - The Congressional Budget Office (CBO) projects that President Trump's comprehensive tax and spending plan will increase the deficit by $2.8 trillion over the next decade, despite an expected increase in economic output [1] Summary by Relevant Sections Economic Impact - The CBO estimates that the tax provisions of the plan will lead to an average increase of 0.5% in real GDP over the next 10 years, which would reduce the deficit by $85 billion [1] - However, the plan is also expected to result in higher interest rates, increasing federal debt interest payments by $441 billion [1] Debt Projections - Two weeks prior, the CBO had projected that Trump's "Big Beautiful Plan" would add $2.4 trillion to the federal government's existing debt of $36.2 trillion over the next decade, without considering potential economic impacts [1] - When accounting for the interest payments on the new debt, the total cost is expected to rise to $3 trillion [1]