How did the major indices perform?
S&P 500: Gained 0.6% to close at a record 6,227.42, driven by strength in tech and consumer sectors. Nasdaq Composite: Jumped 0.9% to finish at an all-time high of 20,393.13, led by AI and semiconductor stocks. Dow Jones Industrial Average: Rose 0.7%, ending just shy of 44,600 points—approaching record territory. Bond yields ticked higher, with the 10-year Treasury yield climbing to around 4.33% as rate-cut bets were delayed. The U.S. dollar also strengthened in response to the upbeat data.
What did the June jobs report reveal and why does it matter for investors?
Thursday’s data from the Labor Department showed that 147,000 new jobs were added in June — much higher than economists’ forecast of 106,000. In addition, the unemployment rate dipped to 4.1%, defying predictions it would rise slightly. Notably, May’s job numbers were also revised upward, signaling that the labor market remains healthier than expected.
This sudden burst of job creation sent a message to markets: the Federal Reserve may not cut rates as early as hoped. Investors who were betting on a July rate cut scaled back those expectations, especially as the data contradicts recent signs of labor market cooling.
US stock market today: Full data and performance update
The US stock market today ended on a strong note ahead of the Independence Day break, with major indexes climbing following a better-than-expected June jobs report. The Dow Jones, S&P 500, and Nasdaq Composite all posted gains, extending their recent record-setting streaks.
Major index performance
Dow Jones Industrial Average (DJI): 44,565.75, up 81.3 points (+0.18%) S&P 500 (GSPC): 6,246.46, up 19.0 points (+0.31%) Nasdaq Composite (IXIC): 20,497.66, up 104.5 points (+0.51%) The S&P 500 marked its fourth record close in five sessions, while the Nasdaq continued its tech-driven rally with strong gains.
Bond market movement
10-Year Treasury Yield: Rose to around 4.34% 2-Year Treasury Yield: Moved up to roughly 3.88% Yields increased as investors reassessed the timeline for a Federal Reserve interest rate cut following the strong labor data.
Key economic data driving markets
Jobs added in June: 147,000 (versus expectations of 106,000) Unemployment rate: 4.1% May payrolls: Revised upward This stronger-than-expected report signaled continued resilience in the labor market, leading investors to pull back bets on a July rate cut.
Which stocks and sectors led the rally?
Tech ruled the day, with AI and chip stocks in the spotlight: Nvidia (NVDA) surged again, pushing its market cap closer to the $4 trillion mark. Datadog (DDOG) spiked over 11% after news that it’s joining the S&P 500 index, replacing Juniper. Synopsys (SNPS) and Cadence Design (CDNS) gained around 4% each, boosted by loosened export restrictions on advanced chips. Travel and banking stocks also showed strength:
Expedia (EXPE) climbed 3.6% JPMorgan Chase (JPM) rose 1.3% EV makers gained ground:
Lucid (LCID) jumped 6% Rivian (RIVN) added 2% on solid Q2 delivery numbers. Other notable movers:
TripAdvisor (TRIP) soared over 16% after an activist investor disclosed a new stake. Oil stocks saw modest gains, with WTI crude trading near $67/barrel. Homebuilders and REITs lagged slightly as higher yields pressured real estate.
Trade and political updates fueling sentiment
Lifting of chip design software export restrictions to China boosted shares of top US semiconductor software companies Optimism grew around a new US-Vietnam trade agreement President Trump’s proposed tax and spending bill neared a final vote, with expectations of passage by July 4 These developments helped improve outlooks on trade stability and fiscal policy, further supporting the stock market.
What are the key macro and global developments?
US–Vietnam Trade Agreement: A fresh trade deal lifted sentiment for consumer and tech exporters, including names like Nike. US Trade Deficit: Widened by 18.7% in May to $71.5 billion, driven by falling exports. UK Markets: British stocks and bonds rebounded as the Labour party reaffirmed fiscal discipline ahead of elections.
Market holiday schedule
July 3 (Thursday): Markets closed early at 1:00 p.m. ET July 4 (Friday): All US stock markets closed for Independence Day
How is Trump’s push against Jerome Powell affecting market sentiment?
President Donald Trump, who has frequently criticized Fed Chair Jerome Powell, intensified his pressure campaign on Wednesday night. In a pointed social media post, Trump said Powell “should resign immediately.” Reports also suggest that Trump might move to announce Powell’s replacement soon, adding uncertainty to the Fed’s outlook.
While investors have long followed the Fed-President dynamic, the renewed tension is playing a growing role in rate cut expectations. Trump’s comments added to speculation that a change in leadership might favor sooner rate reductions, keeping traders on high alert.
Are trade developments helping support Wall Street gains?
Yes — and they’re becoming more significant. The July 9 deadline for global trade talks has traders watching closely. President Trump’s newly inked trade deal with Vietnam has been viewed as a win, easing worries about broad tariffs. Investors are now hopeful that more trade agreements might roll in before the tariff deadline, helping to stabilize international commerce.
Another promising signal came from Washington’s move to lift restrictions on chip design software exports to China, which marks a possible easing in US-China trade tensions. Shares of Synopsys (SNPS) and Cadence Design Systems (CDNS) — top U.S. software providers in that space — saw sharp premarket gains on the news.
What’s in Trump’s tax and spending bill and how could it impact markets?
President Trump’s ambitious tax and spending bill, a major economic move, passed a critical procedural vote in the House on Thursday. The package — which includes substantial federal tax changes and public spending boosts — is expected to go for a final vote by Friday, July 4, which is Trump’s stated deadline.
House Speaker Mike Johnson confirmed he has the support needed to pass the bill. If signed into law, the legislation could have a sweeping impact on multiple sectors, from energy and infrastructure to healthcare and defense — and ultimately influence stock market movement in the second half of 2025.
What else should investors know?
Shortened session: U.S. markets closed early at 1 p.m. ET ahead of the July 4th holiday. What’s next? Investors will be closely watching upcoming inflation reports, Fed commentary, and developments in global trade talks.
US Stock Market Summary – July 3, 2025
Why did US stock trading close early this week?
With Independence Day falling on Friday, US stock markets closed early at 1 p.m. ET on Thursday, and they’ll remain shut on Friday, July 4. The early close is standard practice ahead of major federal holidays and often comes with lighter trading volume.
Despite the shortened session, Thursday still packed a punch with key economic data, political headlines, and trade developments driving Wall Street’s strong momentum into the long weekend.
The US stock market today surged as the Dow, S&P 500, and Nasdaq all posted solid gains following a stronger-than-expected June jobs report. The surprise strength in hiring dashed hopes for a July Federal Reserve rate cut, while Trump’s ongoing conflict with Fed Chair Jerome Powell and fresh optimism on the trade front helped fuel investor sentiment. Markets also saw a boost from the expected passage of Trump’s tax and spending bill, while tech stocks jumped after curbs on software exports to China were lifted.
As Wall Street heads into the holiday break, all eyes remain on Fed policy, Trump’s next move, and the global trade landscape ahead of the July 9 tariff deadline.
FAQs:
Q1. What did the June jobs report show for the US stock market today?
The June report added 147,000 jobs, boosting stocks but lowering rate cut hopes.
Q2. How is Trump influencing the Federal Reserve rate decisions?
Trump called for Powell to resign, raising pressure on the Fed for future rate cuts.
