Tech Rally Lifts Markets as US-Vietnam Trade Deal Offsets Jobs Weakness and Bond Sell-Offs – US Market Wrap

A rally in several major technology companies fueled stock gains, with the market extending its advance after Trump announced a trade agreement with Vietnam. Treasuries fell as a sell-off in UK bonds heightened deficit concerns. The dollar remained steady.

Following earlier losses caused by weak job data, the S&P 500 set a new record. Nike rose along with other apparel and footwear companies as investors hoped the latest US trade agreement would avert a supply-chain catastrophe. Tech megacaps led the way, with Tesla up 5% as a drop in sales was viewed as better than expected. Marvell Technology fell 2.6% following reports that Microsoft is scaling back its AI chip ambitions to avoid delays.

Longer-dated Treasuries underperformed, following moves in the UK, where concerns about Chancellor Reeves’ future reignited debate about the country’s fiscal situation. Investors have expressed similar concerns in the United States, where the Senate passed Trump’s massive tax and spending bill.

In the run-up to the jobs report, economists predicted that employers added 110,000 jobs in June, the fewest in four months, and that the unemployment rate would rise slightly to 4.3%. The Bureau of Labor Statistics report is due Thursday, one day earlier than usual due to the Independence Day holiday.

Employment at US companies fell for the first time in over two years, according to data released on Wednesday. Despite signs of a downshift. Federal Reserve Chairman Powell has stated that the labor market is still strong. Policymakers have refrained from lowering interest rates this year, waiting to see how tariffs affect inflation.