U.S. equity futures fell early Tuesday to kick off the second half of 2025 after the S&P 500 notched another record to close out a stunning quarter. Futures tied to the Dow Jones Industrial Average slipped 98 points, or 0.2%. The S&P 500 futures declined 0.4%, while Nasdaq-100 futures dropped 0.6%. Shares of electric vehicle maker Tesla fell in the premarket after President Donald Trump suggested in a post on Truth Social that the Department of Government Efficiency (DOGE) should look into the government subsidies that CEO Elon Musk’s companies have received. Musk has criticized Trump’s sweeping “big, beautiful bill,” calling it “utterly insane and destructive” over the weekend. In response to the president’s recent post, Musk wrote in a post on X: “I am literally saying CUT IT ALL. Now.” This isn’t the first time Trump and Musk have sparred over the administration’s spending plans. A feud broke out between the two earlier this year, with Trump threatening to cut Musk’s contracts back in June and saying the Tesla chief executive went “CRAZY.” The broad market S&P 500 advanced 0.5% on Monday, posting another record close, while the tech heavy Nasdaq Composite also rose to fresh all-time highs, gaining 0.5%. The blue-chip Dow climbed 275.50 points, or 0.6%. Monday’s moves came after Canada walked back its digital services tax in an attempt to facilitate trade negotiations with the U.S. Ottawa’s move to rescind the new levy comes after Trump said on Friday he would be “terminating ALL discussions on Trade with Canada.” Traders are hoping for deals between the U.S. and its trading partners, as Trump’s 90-day reprieve on his steepest tariffs is set to expire next week. Stocks have made an impressive comeback after suffering steep declines in April, after Trump’s sweeping tariff policy pushed the S&P 500 near bear market territory. The major averages have since made a sharp turnaround, with the broad market index closing the second quarter with a 10.6% gain and the Nasdaq up nearly 18% in the period. Though traders now head into the second half of the year with stocks at record highs, some remain optimistic the market could surge even higher in the months ahead. “We think this is going to be a broader recovery,” Mike Wilson, chief U.S. equity strategist and chief investment officer at Morgan Stanley, said Monday on CNBC’s “Closing Bell.” “I think with the Fed cutting in the second half of this year or next year, we can see a rolling recovery – because now there’s quite a bit of pent-up demand, particularly in those interest rate sensitive parts of the market,” he added. Those corners of the market include manufacturing and housing, the strategist said. Fed Chair Jerome Powell is scheduled to speak at 9:30 a.m. ET at the European Central Bank’s Forum on Central Banking in Portugal. Powell said last week that he expects policymakers will keep monetary policy on hold until there’s more clarity on the impact of tariffs on prices. Traders are also looking ahead to the S&P Global Purchasing Managers’ Index at 9:45 a.m. ET, which will give investors a read on the activity in the manufacturing sector, as well as the ISM manufacturing report at 10 a.m. The Job Openings and Labor Turnover Survey (JOLTS) will also be released Tuesday morning. The 10-year Treasury yield slipped during the Tuesday session, as investors awaited the release of U.S. jobs data in a shortened trading week. The benchmark yield slipped less than 2 basis points to 4.207%, and the 30-year yield fell more than 2 basis points to 4.75%. The 2-year yield was down less than a basis point to 3.713%. 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. Mainland China’s CSI 300 added 0.17% to end the day at 3,942.76. The Asian giant’s Caixin/S&P Global manufacturing purchasing manager’s index reading for June came in at 50.4, higher than the 49 predicted by analysts polled by Reuters. 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 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. Oil prices were steady on Tuesday as investors assessed expectations that OPEC+ will announce an output hike for August at an upcoming meeting as well as trade negotiations. Brent crude was up 5 cents to $66.79 a barrel, while U.S. West Texas Intermediate crude was up 4 cents to $65.15 a barrel. The market’s main focus is the 411,000-barrel-per-day production hike that OPEC+ is expected to announce for August in a meeting on July 6, said Saxo Bank analyst Ole Hansen, adding that this was partially offset by potential trade deals improving the demand outlook. Gold prices rose more than 1% on Tuesday as a weaker dollar and uncertainty over U.S. tariffs, along with concerns about the country’s fiscal outlook, drove investors towards safe-haven assets. Spot gold climbed 1.4% to $3,349.32 an ounce while U.S. gold futures jumped 1.6% to $3,361.70. The U.S. dollar weakened to its lowest level since early 2022, making gold less expensive for overseas buyers.