NEW YORK, United States (AFP) — Wall Street stocks finished mixed Tuesday after the Senate approved Donald Trump’s sweeping legislation to extend tax cuts and enact deep reductions in social spending.

The Republican-led upper congressional chamber narrowly cleared Trump’s mammoth domestic policy Bill, sending the measure back to the House of Representatives, where the vote is also expected to be close.

Equity market viewers have cheered the prospects of extending tax cuts while expressing misgivings about projections that the measure will add some US$3 trillion to the US national debt.

The Dow Jones Industrial Average rose 0.9 per cent to 44,494.94.

But the broad-based S&P 500 dipped 0.1 per cent to 6,198.01, while the tech-rich Nasdaq Composite Index dropped 0.8 per cent to 20,202.89. Both the S&P 500 and Nasdaq closed at records on Monday.

Data released Tuesday showed US manufacturing activity shrank in June for a fourth straight month, though by a slower rate than the prior month.

The report comes ahead of key US data later in the week, including the closely watched monthly jobs report.

Among individual companies, Tesla fell 5.3 per cent as the electric car company’s CEO Elon Musk sparred with Trump over the tax and spending Bill.

After Musk lambasted the legislation as wasteful and misguided, Trump warned of retribution against Tesla and other Musk ventures.

“This high-profile feud introduces political risk,” Briefing.com said of the tiff.

“The personal nature of the conflict, amplified by Trump’s comments implying Tesla’s reliance on subsidies for survival, has sparked fears of broader policy shifts targeting Musk’s business empire. This political uncertainty undermines investor confidence.”

Meanwhile, rival automakers General Motors and Ford jumped 5.7 per cent and 4.6 per cent, respectively, after reporting higher second-quarter US auto sales, as consumers accelerated purchases to get ahead of US tariffs.

Sales were particularly brisk early in the quarter as expectations of Trump’s coming tariffs dominated the news. Besides the US companies, Japanese automakers Toyota and Honda and South Korean brands Kia and Hyundai all reported increased sales compared with the 2024 stretch.

“They were able to capitalise on the tariff-induced fear and that drove sales, especially in the early part of the quarter,” said Garrett Nelson, equity analyst at CFRA Research.

While the auto industry has been near the center of Trump’s efforts to reset global trade, consumers have yet to see significant price increases due to tariffs.

That is because companies have relied on existing inventories that include vehicles imported before tariffs took effect. Prices are expected to rise more in the second half of 2025, but market demand and supply forces could constrain such hikes, analysts said.

GM notched a 7.3 per cent rise in vehicle deliveries to 746,588 behind a continued solid performance in pickup trucks and SUVs, as well as good sales of models geared towards customers seeking affordable vehicles.

These include the Chevrolet Equinox and Chevrolet Trax, a lower-priced vehicle imported from South Korea.

Ford, meanwhile, scored a 14.2 per cent jump in sales to 612,095, reflecting the boon from a popular programme that offered customers employee pricing on many models.

Most of Ford’s leading vehicles saw higher sales, including the best-selling pickup F-series, as well as the Ford Explorer SUV.

While Ford had lower sales of its all-electric F-150 Lightning Truck and the Mustang Mach-E, it reported a jump in hybrid vehicle sales.

Higher sales had been expected for both companies, but the increases were slightly more than projected by analysts at Edmunds.com.

At Toyota, sales jumped 7.2 per cent to 666,470 autos, with double digit gains in several vehicles, including the Toyota Camry sedan and the Toyota Tacoma pickup truck.

Honda, Kia and Hyundai reported quarterly sales increases of between five and 10 per cent.