The S&P 500 climbed 0.47% to a record 6,227 points at the close of trading on 2/7. The Nasdaq Composite rose 0.9% to a new peak of 20,393 points. However, the Dow Jones Industrial Average slipped 10.5 points, or 0.02%.
The S&P 500 gained momentum after former US President Donald Trump announced a trade deal with Vietnam on Truth Social. This followed a phone call between Trump and General Secretary To Lam. According to the Ministry of Foreign Affairs, the two leaders welcomed the agreement reached by negotiators from both countries on a joint US-Vietnam statement outlining a reciprocal, fair, and balanced trade agreement framework.
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Traders on the floor of the New York Stock Exchange on 30/6. Photo: Reuters |
Traders on the floor of the New York Stock Exchange on 30/6. Photo: Reuters
Trump praised Vietnam's commitment to granting preferential market access for US goods, including large engine motorcycles. He affirmed that the US would significantly reduce reciprocal taxes on many Vietnamese exports and continue to cooperate in resolving issues affecting bilateral trade relations, particularly in priority sectors. The White House has not yet released details of the agreement.
Shares of some US companies with large supply chains in Vietnam rose immediately after Trump's announcement. Nike's stock closed up 4%. Lululemon rose 0.5%. Columbia Sportswear gained 1.5%. VF Corporation, owner of The North Face and Vans, climbed nearly 2%.
However, a disappointing June jobs report tempered Wall Street's gains. According to ADP, the US private sector lost 33,000 jobs last month.
This marks the first time ADP's monthly report has shown a decline since 3/2023. A Dow Jones survey had predicted 100,000 new jobs. This data sparked concerns about the health of the US economy. The official jobs report will be released on 3/7.
Sam Stovall, an analyst at CFRA Research, suggested that a weakening labor market would force the US Federal Reserve (Fed) to consider cutting interest rates at its July meeting. Investors currently predict a 23% probability of a Fed rate cut this month, up from 21% a day earlier.
Ha Thu (via Reuters)
