Overview
The U.S. stock market today faced mixed fortunes as the looming government shutdown added uncertainty, yet hopes of an interest rate cut helped buoy the markets. The Dow and S&P 500 hit record highs, while the tech-focused NASDAQ struggled due to sector-specific declines.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News Story
Due to the government shutdown, the U.S. Labor Department delayed its monthly employment report, prompting market anxiety about the state of the economy. Private employment indicators suggested a slowdown in hiring and a decrease in labor demand. Additionally, the ISM services index showed contraction for the first time since the pandemic, bolstering expectations of a Federal Reserve rate cut in October. The technology sector faced pressures as Applied Materials projected a revenue decline due to new U.S. Commerce Department regulations, while Palantir's stock fell sharply after a report of defects in its systems, a claim the company denied. Despite these issues, AI-related contracts provided some market support as news of significant acquisitions in the AI data center space continued to fuel interest. Geopolitically, tensions eased slightly as former President Trump issued a stern warning to Hamas, and news broke of partial agreements to certain conditions by Hamas. However, political uncertainties within the U.S. remained high, with the White House maintaining its confrontation regarding the shutdown.
Tomorrow's Economic Indicators
| Time | Event |
|---|---|
| 2025-07-04 | Employment Report Expected |
| 2025-07-04 | ISM Non-Manufacturing Index |
General Opinion
Today's market reflected optimism due to anticipated interest rate cuts despite the volatility introduced by the government shutdown and declining tech stocks. As key economic indicators release, greater clarity is expected in the market's direction. Moving forward, interest rates, political uncertainty, and geopolitical elements will likely continue to be major influences on market volatility.
