Stock Market Today: Dow wavers, S&P 500 touches record intraday high and Nasdaq ticks higher as Trump touts Vietnam trade deal; investors digest weak ADP jobs data

U.S. equities closed mostly higher on Wednesday, July 2, 2025, with the S&P 500 achieving its sixth record close of the year and the Nasdaq also gaining, primarily driven by President Trump's announcement of a new trade deal with Vietnam, which outweighed investor digestion of weaker-than-expected ADP jobs data.

Analysis

U.S. equities demonstrated notable strength, with the S&P 500 achieving its sixth record close of the year and the Nasdaq also finishing higher. The primary catalyst for this upward momentum was the announcement of a new trade agreement with Vietnam by President Trump, which generated a strongly positive market sentiment. This optimism was sufficient to overshadow the release of weaker-than-expected ADP jobs data, indicating that investors are currently prioritizing positive developments in international trade policy over signs of domestic economic softness. The market's ability to absorb the weak labor market signal and rally to a new high suggests a risk-on appetite is prevailing, driven by the perceived benefits of the new trade accord a key theme of the trading session.

Key Decisions for Investors

• Investors should maintain a constructive view on U.S. equities, as market momentum is clearly positive and focused on the benefits of the new Vietnam trade deal, which is currently outweighing negative economic data.
• It is prudent to monitor upcoming, more comprehensive economic reports, such as official employment figures, as the market's resilience could be tested if further data confirms a cooling economy.
• Consider identifying companies with significant exposure to Vietnam, either through supply chains or direct sales, as they may be positioned for outperformance following the implementation of the new trade agreement.