The stock market rose on Wednesday after President Donald Trump announced a trade deal with Vietnam. The S&P 500 gained 0.47%, closing at a record 6,227.42, while the Nasdaq Composite jumped 0.94% to finish at 20,393.13. The Dow Jones Industrial Average, however, slipped 10.52 points, or 0.02%, ending at 44,484.42.
Earlier in the day, stocks faced some pressure after the latest ADP report showed a decline in private sector jobs last month. This marks the first monthly decline in ADP’s payrolls report since March 2023. Economists had expected private payrolls to grow by 100,000 jobs.
“We have been seeing a weakening of the labor market for months now,” said Ross Mayfield, investment strategist at Baird. “This report might catch the Federal Reserve’s attention more than previous reports.”
Although the ADP report is not always a reliable predictor for the government’s nonfarm payrolls report, which is due out Thursday, economists expect an increase of 110,000 jobs for June. If the official jobs data also falls short, it could prompt the Federal Reserve to consider an interest rate cut when policymakers meet later this month.
Sam Stovall, chief investment strategist at CFRA Research, noted that a weak employment report could lead the Fed to lower rates. He also pointed out that the Fed Chair Jerome Powell has indicated that tariffs might affect policy decisions. The setup for European equities looks attractive now that the S&P 500 has returned to all-time highs, according to Barclays.
Emmanuel Cau, head of European equity strategy at Barclays, suggested that the Stoxx 600 index could soon break out to new highs, potentially reaching 570 by year-end, an increase of more than 5%. The ADP report revealed that small businesses suffered significant losses in June. Businesses with fewer than 20 employees saw a net loss of 29,000 jobs, while those with more than 500 employees added 30,000 jobs.
“It’s meaningful given just how many people are employed by small and private businesses,” said Ross Mayfield of Baird. Shares of Centene plummeted more than 39% in midday trading after the healthcare company withdrew its full-year guidance for 2025, making it the worst performer of the day. This sell-off has caused the stock to drop more than 43% this year, marking 2025 as the worst year in the company’s history.
Robinhood’s stock surged more than 7% as investors speculated that the brokerage might soon join the S&P 500, following the completion of Juniper Networks’ acquisition. Gordon Haskett analyst Don Bilson listed Robinhood as one of the leading candidates for the index.
S&P 500 reaches new record
Stocks tied to Ethereum (ETH) rose on Wednesday amidst renewed interest in stablecoins and tokenization trends supported by the Ethereum network. Various crypto-related stocks saw significant gains, with a notable 14% jump in the shares of a bitcoin miner that recently adopted ETH as its primary treasury reserve asset. U.S. stocks soared on Thursday, with the S&P 500 and Nasdaq Composite hitting fresh record highs, driven by a strong June jobs report that fueled optimism about the U.S. economy’s resilience amidst changing trade policies and geopolitical dynamics.
The Dow Jones Industrial Average advanced 344.11 points or 0.77%, settling at 44,828.53. The S&P 500 added 0.83% to close at 6,279.35, and the Nasdaq Composite gained 1.02% to end at 20,601.10, with both indices closing at record levels. According to the Bureau of Labor Statistics, nonfarm payrolls surged by 147,000 in June, surpassing the Dow Jones economists’ forecast of 110,000 and the upwardly revised figure of 144,000 in May.
The unemployment rate fell to 4.1%, contrary to economists’ projections of an increase to 4.3%. The robust jobs report diminished expectations for an imminent interest rate cut by the Federal Reserve. Current data from CME Group indicates a roughly 95% chance that the central bank will hold rates steady at its upcoming meeting.
Jed Ellerbroek, portfolio manager at Argent Capital Management, remarked, “The biggest implication from the employment report would seem to be there’s no way the Fed’s cutting rates in July, and it’s a question mark as to whether rates are cut at all this year.”
Thursday’s data eased concerns stemming from Wednesday’s ADP report that showed weaker private payrolls, alleviating fears of economic slowdown due to rapid policy changes. Investors are keenly awaiting any future trade deal announcements following President Donald Trump’s recent statements. Despite potential market vulnerabilities if tough negotiation stances are adopted, analysts believe the overall market sentiment remains positive.
“We will see a real tariff impact for a lot of businesses, but the market is going to digest that without too much trouble,” Ellerbroek added. Thursday concluded with a shortened trading session, with the New York Stock Exchange and the Nasdaq closing early at 1 p.m. ET. U.S. markets will remain closed on Friday in observance of Independence Day.
All three major averages closed the week on a high note; the S&P 500 and Nasdaq Composite recorded gains of 1.7% and 1.6%, respectively, while the Dow saw a 2.3% increase. In other stock movements, solar and tech companies made significant strides. First Solar shares jumped 8%, and Enphase Energy added 5% as renewable energy companies responded positively to the legislative environment.
CrowdStrike surged about 4%, driven by Wedbush Securities’ increased price target following momentum in its cyber platform approach. Chip designers like Synopsys rallied over 4% due to changes in export regulations to China. Furthermore, litigation finance company Burford Capital saw a 19% rise in its shares after beneficial legislative changes, and thirty-six stocks achieved new 52-week highs, indicating broad market strength.
