Major United States benchmarks finished mixed on Wednesday (Thursday AEST), with the S&P 500 and Nasdaq Composite closing at fresh record highs after President Donald Trump announced a new trade agreement between the U.S. and Vietnam.
The S&P 500 rose 29.4 points or 0.5% to end at 6,227.4, and the Nasdaq climbed 190.2 points or 0.9% to a record 20,393.1. In contrast, the Dow Jones eased 10.52 points, or 0.02%, to close at 44,484.4.
Trump revealed the agreement on Truth Social, noting the inclusion of a 20% tariff on Vietnamese imports.
Shares of Nike, which manufactures around half of its shoes in Vietnam, jumped 4.1% following the announcement.
Economic data added to the market’s focus, with Automatic Data Processing (ADP) reporting a surprise drop of 33,000 private-sector jobs in June, the first decline since March 2023, and well below an expected gain of 95,000.
The official nonfarm payrolls report is due Thursday, with forecasts pointing to an increase of 110,000 jobs.
A weaker print could further stoke expectations of a Federal Reserve rate cut later this month, with the CME FedWatch Tool now showing a 25.3% probability of a 25 basis point rate cut, up from 21% earlier in the week.
Meanwhile, traders monitored developments in fiscal policy, as Trump’s tax-and-spending bill narrowly passed the Senate and heads back to the House.
On the bond markets, yields edged higher, with the 10-year rising to 4.283% and the 2-year to 3.791%.
