Market Review: July 02, 2025
Closing Recap
On July 2, 2025, U.S. stocks remained in a tight range throughout the afternoon, influenced by tariff/trade news, a weak private payroll report, and various sector movements. The S&P 500 and Nasdaq reached all-time highs, while the Dow approached its record. The Russell 2000 outperformed large caps, rising over 1.3%. Key sectors included Materials and Energy, with a notable late-day surge in oil prices.
Market Indices Performance
| Index | Up/Down | % Change | Last |
|---|---|---|---|
| DJ Industrials | -10.52 | 0.02% | 44,484 |
| S&P 500 | 29.41 | 0.47% | 6,227 |
| Nasdaq | 190.24 | 0.94% | 20,393 |
| Russell 2000 | 28.84 | 1.31% | 2,226 |
Key Highlights
The market was buoyed by a rebound from the previous day's dip, with the S&P 500 and Nasdaq achieving new highs. The Dow's performance was less impressive, but it is nearing its record. The Russell 2000's strong performance was attributed to gains in the Materials and Energy sectors, while Utilities and Healthcare were the biggest drags on the S&P 500.
Trade and Tariff News
President Trump announced a trade deal with Vietnam, imposing a 20% tariff on goods sent to the U.S. and a 40% tariff on transshipping. In exchange, Vietnam will open its markets to U.S. products without tariffs. This news initially caused a drop in shares of retailers manufacturing in Vietnam, but they later rebounded as the tariff was lower than expected. Meanwhile, uncertainty remains regarding trade negotiations with Japan and India.
Economic Data
The ADP payroll report indicated a decline of 33,000 private-sector jobs in June, significantly below expectations. This marked the first negative reading since March 2023, raising concerns ahead of the upcoming Nonfarm payroll report.
Commodities and Currencies
Oil prices surged, with WTI crude rising by 3.06% to $67.45 per barrel. The U.S. dollar showed slight recovery against other currencies, while gold prices increased by 0.30% to $3,359.70 per ounce. Treasury yields ticked higher as markets anticipated the June jobs report.
Sector News Breakdown
Autos
TSLA shares rose after delivering 384,122 vehicles in Q2, despite a year-over-year decline. Rivian and other auto suppliers also saw movements in their stock prices based on performance and analyst ratings.
Retail and Consumer Staples
In retail, ROST was upgraded to Buy, while other companies faced downgrades due to competitive pressures and changing consumer preferences.
Financials
Major banks announced dividend hikes following stress tests, indicating strong financial health. Payment companies also saw positive analyst ratings.
Biotech & Pharma
ABEO closed a significant sale, while BAX faced an urgent recall from the FDA. Other companies in the sector experienced various stock movements based on recent news.
Conclusion
The market showed resilience amid mixed economic signals and trade uncertainties. Investors are closely watching upcoming economic reports and sector performances as they navigate the current landscape.