Stocks soar on Vietnam trade deal as the S&P touches a new intraday high
Key Takeaways
The U.S. stock market continued to recover from the doldrums of earlier in the year, pushing itself to new heights.
Article Overview
Quick insights and key information
3 min read
Estimated completion
investment
Article classification
July 2, 2025
08:08 PM
Fortune
Original publisher
Finance·Stocks soar on Vietnam trade deal as the S&P touches a new intraday highBY Paolo ConfinoBY Paolo ConfinoReporterPaolo ConfinoReporterPaolo Confino is a reporter on Fortune’s global news desk where he covers each day’s most important stories
SEE FULL BIOThe S&P 500 continued its rise to record highs on Wednesday
Michael Nagle/BloombergThe S&P 500 hit another record, as recovery in U
Thrashed on news the U
Had reached a trade deal with Vietnam and that the private sector lost 33,000 jobs in June
On Wednesday continued their rocky but unmistakably upward trajectory
The S&P 500 rose 0. 5% and hit a new intraday high of 6,224. 61; giants Nvidia and Tesla had strong sessions after sinking the day before; and the Nasdaq ticked up 0
The Dow Jones had a choppy day, sinking in the morning, shooting up 0. 5% shortly before noon, and ultimately closing the day down 11 points
Several Magnificent Seven companies rebounded
Nvidia rose 2. 6% and Apple was up 2
Tesla s climbed 5% on reports that a poor sales quarter was not as bad as expected
Also welcomed news the U
Had agreed to a framework for a trade deal with Vietnam
The outlines of the deal includes a 20% tariff on all imports from Vietnam
In exchange, Vietnam will roll back trade barriers on American goods, President Donald Trump announced in a social-media post. “We will be able to sell our duct into Vietnam at ZERO Tariff,” Trump wrote
Apparel stocks jumped on the news
Gap Inc, Lululemon, and Nike all shot up immediately once the deal became public
All three companies have major manufacturing operations in Vietnam
In the minutes after the announcement, Gap rose 2. 4% and Lululemon 2
Both then dropped precipitously before evening out in the session’s later hours
At market close, Gap and Lululemon s were up both up 0
However, Nike had a similar up-and-down in the span of minutes before recovering much faster
Across the, the reaction to the Vietnam trade deal was somewhat muted after an abysmal private-employment report
ADP’s June of the private sector said it lost 33,000 jobs that month, when analysts had expected an increase of 100,000
That said, ADP numbers have not always been reliable indicators of what the Bureau of Labor Statistics’ monthly reports will show
Investors will still be wondering whether June’s private-sector job losses may be an initial sign of weakness in the labor market
A slackening in the labor market was expected as analysts lowered growth estimates for the year. “We expect the unemployment rate to edge higher in the second half of 2025 as the labor market softens in response to slower growth, with the full force of tariffs working through the economy,” wrote Oxford Economics’ lead U
Economist Nancy Vanden Houten in a Wednesday note
The next BLS report will influence the Fed’s rate decisions at its upcoming July meeting, especially if it ves to be as disappointing as Wednesday’s
Although contrary to what might be expected, investors seem to be brushing off the lackluster jobs report precisely because it might induce the Fed to resume cutting rates. “Indeed, this morning’s huge miss on ADP jobs is not worrying anyone the health of the cycle,” said Interactive Brokers senior economist José Torres. “It appears to be just the opposite, with participants excited that the Fed may assume an increasingly dovish posture in order to defend the labor market. ”Introducing the 2025 Fortune 500, the definitive ranking of the biggest companies in America
Explore this year's list.
Related Articles
More insights from FinancialBooklet