U.S. Stocks Mixed as Senate Passes Trump Budget; Tesla Slumps on Musk-Trump Feud

Major U.S. stock indices showed divergent performance following the Senate's narrow approval of President Trump's budget bill. The Dow Jones Industrial Average gained 340 points (0.77%), while the S&P 500 retreated 0.11% from record highs and the Nasdaq Composite fell 0.61% amid Tesla's 8% decline.

The budget bill passed 51-50 with Vice President JD Vance casting the tie-breaking vote, setting up a House showdown. The legislation proposes trillions in tax cuts alongside reductions to Medicaid, food stamps, and clean energy programs - provisions that drew opposition from fiscal conservatives concerned about adding $3.3 trillion to the deficit.

Elon Musk reignited his public feud with Trump, condemning the bill's energy provisions as "utterly insane and destructive." The Tesla CEO's criticism comes as his electric vehicle company stands to lose significant clean energy subsidies that previously benefited its operations.