Markets Move Ahead on Vietnam Trade Deal
The S&P 500 rose on Wednesday after President Donald Trump announced a U.S.-Vietnam trade deal. However, investor optimism was limited due to a new report showing private payrolls surprisingly decreased in June, raising concern over the state of the U.S. economy.
The Dow Jones Industrials recouped 42.53 points to 44,537.47
The much-broader index strengthened 16.39 points to 6,214.40
The NASDAQ Composite added 143.02 points to 20,345.91.
Shares of Nike, which manufactures about half of its footwear in Vietnam as well as China, were 3% higher after the announcement.
The private sector lost 33,000 jobs last month, according to the latest report by ADP. That marks the first monthly decline in ADP’s payrolls report since March 2023. Economists polled by Dow Jones expected payrolls to grow by 100,000.
The report comes with the stock market near record highs despite concerns that lingering trade tensions between the U.S. and other countries could slow U.S. and global economic growth.
To be sure, the ADP report has a lackluster record predicting the government’s monthly jobs report, which is due out Thursday. Economists expect growth of 110,000 jobs for June.
Prices for the 10-year treasury were lower, raising yields to 4.29% from Tuesday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices took on 42 cents to $65.87 U.S. a barrel.
Gold prices recovered three dollars to $3,352.80 U.S. an ounce.
