Put pressure on the house to pass Trump’s “big beautiful bill” by the July 4th deadline
The pressure is that House Republicans will pass President Trump’s massive tax cuts and spending bills by the July 4th deadline.
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US stocks opened higher as the broad S&P 500 and high-tech heavy NASDAQ score fresh records as the past few months have fostered economic optimism in June.
Last month, employers added 147,000 new jobs, which are better than the average economist forecast for 110,000 jobs. Rather than inching to 4.3% as economists predicted, the unemployment rate fell to 4.1% from 4.2% in May. The previous month’s revisions featured more rosy pictures. The number of jobs added in April and May was a total of 16,000, with a total of 16,000 cases compared to previous estimates.
“These figures demonstrate economic resilience despite expectations for a slower backdrop of tariffs and fiscal uncertainty,” said Lara Castleton, head of portfolio construction and strategy at Janus Henderson Investors.
At 9:33am ET, the Blue Chip Dow added 0.24%, or 108.08 points, to 44,592.50. The S&P 500 scored 0.45% (27.80 points) at 6,255.22. And the high-tech Nasdaq rose 0.55% or 112.29 points to 20,505.42. The benchmark 10-year yield was up to 4.334%.
A strong report comes right after a negative private pay report. According to payroll processing company ADP, the private sector unexpectedly lost 30,000 jobs in June, severely losing hopes for a 100,000 increase.
However, Jeff Schulze, Head of Economic Market Strategy at Clearbridge Investments, said:
Trade hopes and tax bills
Investors will also look at trade negotiations and progress on the mega-tax bill backed by President Donald Trump in the House.
The S&P 500 and Nasdaq each scored high after Trump said in a social media post that the US had signed a trade deal with Vietnam. The transaction includes a 20% tariff on imports from the country. Items that occur in other countries but are transferred to Vietnam for the final shipping to the US will be collected 40%.
After the bell, Chip software makers Synopsys and Cadence said the US government had withdrawn export restrictions on ChIP design software to China.
Both of these moves eased the fear of long-term trade tensions and tamed fear of inflation. The economist predicted that if Trump enacted his highest tariffs, inflation could be higher.
Meanwhile, the House continues to discuss drastic tax bills to try to get them to the president’s desk by July 4th. The bill is expected to face a tough vote as it remains critical of Medicaid and food aid cuts, and the bill’s costs.
Corporate News
- Datadog will replace the Juniper network on the S&P 500 on July 9th.
- Electric car maker Lucid Group said it delivered more vehicles in the second quarter.
- Shares in online travel agency Tripadvisor rose sharply after activist investor Starboard Balue reported that he had acquired more than 9% stake.
(This story has been updated with new information.)
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
