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Here's what powered the stock market higher during its short and sweet record week

July 3, 2025
05:44 PM
6 min read
AI Enhanced
economymoneystockstechnologyfinancialsmarket cyclesseasonal analysisgeopolitical

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Thursday's jobs report helped cap off the week on a positive note.

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6 min read

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investment

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Published

July 3, 2025

05:44 PM

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CNBC

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Key Topics
economymoneystockstechnologyfinancialsmarket cyclesseasonal analysisgeopolitical

Short and sweet: That was this week's stock market in a nutshell

The second half of the year kicked off in record style, with both the S & P 500 and the Nasdaq closing at multiple all-time highs, including in Thursday's holiday-shortened session

Stock market is closed on Friday for the Fourth of July

Extending its stunning comeback from its April sell-off, stock Nvidia broke all kinds of records this week as its market value topped $3. 9 trillion on Thursday

It the day up 1. 3% at $159. 34 a, good for a $3. 89 trillion market cap

To fully appreciate the current bullishness on Wall Street, we have to look back on the volatile second quarter in the market, which Monday

Considering the Nasdaq lost over 12% in the first week of the quarter on President Donald Trump's "recical" tariff announcement, it was incredible to see the -heavy index close out the April-to-June period with a 17

That was the Nasdaq's best quarterly performance since the early days of Covid, when it gained over 30% in the second quarter of 2020, as the Federal Reserve cut interest rates to zero and pumped money into the economy to prevent economic Armageddon from the pandemic

The S & P 500, meanwhile, advanced 10. 57% in this year's second quarter, recovering from a greater-than-11% decline in the first week of April

The board market index saw its best quarter since Q4 of 2023, when it gained 11

Eight out of the 11 sectors advanced in the April-to-June period, with nology leading the way with 23

The worst performing sector was energy, which lost 9. 37% in Q2, its worst quarter since Q3 of 2020

The bulk of the losses in energy came in the waning days of the second quarter when oil prices tanked ing the U

Bombing of three Iranian nu sites

The market deemed the U

Involvement in the Israel-Iran conflict as a non-systemic risk and West Texas Intermediate crude sank nearly 9% for the quarter

In the absence of any major headlines out of the Mideast and Trump's Wednesday announcement of a framework for a trade deal with Vietnam, the S & P 500 and Nasdaq each advanced for the week, up 1. 6%, respectively

Capitol Hill is on the precipice of dering the president a major legislative victory, with the final passage of the "big, beautiful bill" of spending priorities and tax cuts expected soon after ing a key cedural vote in the House

Ironically, a strong jobs report Thursday cut both ways for the president

On the one hand, more hiring and a lower unemployment rate shows the resiliency of the economy in the face of the tariff and geopolitical uncertainty

That was a win for Trump

But on the other hand, strength in the economy weakens the president's argument for immediate Federal Reserve interest rates cuts

In fact, on the eve of the government's June employment report and ing a much weaker-than-expected ADP private-sector jobs reading, the president posted on social media that Fed Chairman Jerome Powell should resign

Trump was quiet on the rate front on Thursday

That's because payrolls for last month grew by 147,000, much more than the Dow Jones estimate for 110,000

The nation's unemployment rate in June dipped to 4. 1% when a slight uptick to 4. 3% had been expected

To be sure, much of that unemployment rate decline can be attributed to fewer people working or looking for jobs

Average hourly earnings for last month increased by a less-than-expected 3. 7% versus the year0ago period and were below the 3. 8% gain seen in May

This week, we got positive from the banks, which were free to capital allocation plans ing the conclusion of the Fed's stress tests

Holdings Goldman Sachs and Wells Fargo were the two standout winners this year, and both of them increased their dividends

Goldman hiked its quarterly payout by 33% to $4 per

Wells Fargo boosted its dividend 12. 5% to 45 cents per

For Wells, the stress test was just one more bit of good news since the 2018 Fed-imposed $1. 95 trillion asset cap was lifted early last month

Another positive within the portfolio came Monday when Jim Cramer interviewed Amazon CEO Andy Jassy on "Mad Money. " In the wide-ranging interview, Jassy ly laid out the massive opportunity he sees in artificial intelligence, as well its long-term bets such as its ject Kuiper satellite internet service

Jim is optimistic that Kuiper could eventually help Amazon's Prime gram add more members

The interview came ahead of the company's first-ever four-day Prime Day, which kicks off Tuesday and goes to Friday

Over at Meta Platforms, we learned more CEO Mark Zuckerberg's "superintelligence" ambitions, as he authored a memo to employees explaining the new internal structure for AI re at the company

As we wrote in an analysis piece Tuesday, Zuckerberg's costly push to hire the best and brightest AI minds hasn't cost Meta stock yet because investors believe the payoff will be worth it

Depot, meanwhile, announced that Monday that it would acquire GMS, a building materials distributor that specializes in ducts such as drywall, steel studs and insulation

Including debt, the deal gives GMS an enterprise valuation of $5

While we understand Depot's desire to push further into the world of fessional contractors — building on last year's pricey takeover of SRS Distribution — Jim said he wishes the money spent on GMS was instead spent repurchasing stock because he believes Depot s are considerably undervalued

Finally, the S & P Short Range Oscillator Thursday's session even further into overbought territory at 8. 25% (the threshold to determine overbought or oversold conditions is plus or minus 4%, respectively)

While can stay overbought for a while, we to look for areas to raise cash when we reach these levels as they indicate a near-term pullback is increasingly ly. (Jim Cramer's Charitable Trust is long NVDA, AMZN, META and HD

See here for a full list of the stocks. ) As a r to the CNBC with Jim Cramer, you will receive a trade alert before Jim makes a trade

Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio

If Jim has talked a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade

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