New York, NY — U.S. stock futures displayed minimal movement Wednesday evening as investors prepared for the release of the highly anticipated June jobs report. Futures tied to the S&P 500 edged slightly higher, while the Nasdaq 100 showed little change. Futures for the Dow Jones Industrial Average gained 29 points, marking an increase of less than 0.1%.
Earlier in the day, the S&P 500 reached a new record close, climbing by 0.47%. This uptick helped the index achieve an unprecedented intraday high. The Nasdaq Composite also demonstrated strong performance, rising 0.94% to secure a record closing value. Conversely, the Dow fell marginally, experiencing a loss of 0.02%.
These market movements followed President Donald Trump’s announcement via Truth Social regarding a trade agreement with Vietnam. The deal includes a 20% tariff on imports from Vietnam, with an elevated rate of 40% on goods that are routed through the country before entering the U.S. market. This development provided a temporary boost to investor sentiment, contrasting with a report released earlier by payroll processing firm ADP, which indicated a decline of 33,000 in private sector hiring for the previous month.
Market participants are now keenly awaiting the Bureau of Labor Statistics’ upcoming report on nonfarm payrolls. Analysts surveyed by Dow Jones anticipate an addition of 110,000 jobs for the month of June, a decline from the prior month’s gain of 139,000. Additionally, projections suggest that the unemployment rate may inch up to 4.3%, a slight increase from May’s 4.2%.
Investor sentiment may shift significantly based on the jobs report. Jay Hatfield, founder and CEO of Infrastructure Capital Advisors, emphasized that should the report disappoint, a rotation away from technology stocks toward more value-oriented investments is likely. He noted the strong impact technology stocks have on the overall market, indicating that a downturn in this sector could lead to broader declines.
Conversely, a weak jobs report might motivate the Federal Reserve to consider earlier interest rate cuts, potentially as soon as July. Hatfield indicated that this could create a more favorable atmosphere for investors in value stocks, should technology shares falter.
As traders keep a close eye on employment data, they are concurrently tracking the progress of Trump’s expansive tax bill, which successfully passed through the Senate on Tuesday. The legislation now heads back to the House, where negotiations among Republican lawmakers remain contentious.
Looking ahead, Thursday’s trading session is expected to be shortened, with both the New York Stock Exchange and Nasdaq slated to close at 1 p.m. ET. U.S. markets will pause operations on Friday in observance of Independence Day.