Today, the U.S. stock market closed higher as robust employment data alleviated concerns over economic slowdown, pushing the markets to all-time highs. Anticipations surrounding the Federal Reserve's interest rate decisions resulted in a spike in sensitive two-year Treasury yields. Notably, shares of Synopsys and Hayden's soared after the U.S. government lifted restrictions on semiconductor design software exports to China.
Overview
On July 3, 2025, the U.S. stock market exhibited positive momentum, driven by stronger-than-expected employment figures. The labor market showed robustness, enhancing investor sentiment and leading to new record highs in various indices.
Major News
Key developments today included:
- The U.S. economy added 147,000 new jobs in June, surpassing expectations, while the unemployment rate dropped to 4.1%.
- Average hourly wage growth was reported at 3.7% compared to the previous year, marking the lowest increase since July 2024.
- Although headline figures appeared strong, a closer examination revealed significant employment gains primarily in the public education sector, with some weakness noted in more sensitive areas.
- Mixed signals were observed in additional data, with last week’s new jobless claims reaching their lowest in six weeks, indicating labor market strength. However, the service sector faced continued declines, highlighting the impact of policy adjustments.
- In trade affairs, as the deadline for Trump’s tariff exemptions approaches, negotiations regarding the U.S.-Vietnam trade agreement are ongoing, with final decisions expected soon.
- The House of Representatives passed Trump’s tax cut bill by a margin of 218 to 24, potentially influencing market dynamics.
Upcoming Economic Indicators
| Date | Indicator | Expected Value |
|---|---|---|
| July 5, 2025 | Non-Farm Payrolls | 150,000 |
| July 5, 2025 | Unemployment Rate | 4.0% |
| July 5, 2025 | Average Hourly Earnings Growth | 4.0% |
| NasDaq | S&P 500 |
| Dow Jones | Won/Dollar |
Overall, the market today reflected optimism driven by positive employment news, yet underlying challenges in specific sectors remain a concern. As we move into tomorrow, attention will likely shift toward the forthcoming economic indicators and their implications for monetary policy. Investors may need to navigate this complexity while maintaining focus on broader economic trends and the evolving landscape of interest rates.
