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Major Indexes Mixed as Labor Market Shows Signs of Cooling
The stock market today showed mixed performance on Wednesday, July 2, 2025, with the S&P 500 and Nasdaq moving higher while the Dow Jones Industrial Average slightly retreated. By mid-afternoon, the S&P 500 had gained 0.34% to 6,218.80, while the tech-heavy Nasdaq Composite rose 0.81% to 20,366.15. The Dow Jones Industrial Average slipped 0.07% to 44,463.53.
Markets received a boost after President Trump announced a new trade deal with Vietnam, lifting investor hopes that more agreements will come before the July 9 tariff pause deadline. This positive development helped offset concerns about a cooling labor market, as ADP data showed U.S. private employers unexpectedly cut 33,000 jobs in June, badly missing expectations of around 98,000 jobs added.
“This unexpected decline in private sector employment marks the first month of job losses in over two years,” said market analyst Josh Schafer. “The data lays the groundwork for tomorrow’s critical June U.S. jobs report, which will be a key factor in the Federal Reserve’s decision-making process regarding interest rate cuts.”
Investors Eye Potential Rate Cuts as Labor Market Cools
The surprising job loss data has intensified speculation about the timing of potential Federal Reserve interest rate cuts. According to CME data, while the majority of Fed watchers still do not expect the central bank to cut rates in July, almost all are betting on at least one rate cut by September, with over 20% now pricing in two cuts by that meeting.
The markets today reflected this shifting sentiment, with investors rotating out of growth-oriented technology stocks and into more cyclical and defensive sectors. This sector rotation began on Tuesday, the first trading day of the second half of 2025, and continued into Wednesday’s session.
“We expect to see more volatility in fixed income, even once they get the bill passed, whatever that looks like,” said Jose Rasco, HSBC Global Private Banking and Wealth Management Americas CIO. “That’s going to bleed over into the equity markets.”
Trump’s Budget Bill Advances Amid Market Uncertainty
President Trump’s “One Big Beautiful Bill” remains in focus after clearing the Senate thanks to Vice President JD Vance’s tie-breaking vote. The bill is now heading to the House, where split Republican factions threaten to delay a potential final vote as Trump pushes to sign it by July 4.
The nonpartisan Congressional Budget Office has projected that the bill will add more than $3 trillion to the federal deficit over the next decade. The U.S. government is currently facing a massive $36.2 trillion fiscal deficit. This fiscal outlook has raised concerns among some investors, particularly after Moody’s Investor Services downgraded the U.S. sovereign credit rating by one notch to Aa1 from Aaa in May.
Insurance stocks fell across the board Wednesday, as the bill would slash federal health spending on Medicaid. Centene Corporation (CNC) plummeted 39.65% to $34.19, while Molina Healthcare (MOH) dropped 20.66% to $243.02, and Oscar Health (OSCR) fell 17.68% to $16.84.
Notable Stock Movers in Today’s Market Recap
Tesla (TSLA) shares climbed 4.61% to $314.58 after the electric vehicle maker produced more vehicles globally than expected in the second quarter, even as sales plummeted. The company’s ability to maintain production levels despite challenging market conditions impressed investors.
Apple (AAPL) stock rose 1.77% after receiving an upgrade from Jefferies (JEF) analysts, who cited potential growth opportunities in the company’s services segment and upcoming product launches.
NVIDIA Corporation (NVDA) continued its impressive run, gaining 2.59% to $157.27 as investors remain bullish on the chipmaker’s dominant position in the AI market.
Among the day’s top gainers, Bitmine Immersion Technologies (BMNR) surged 18.85% to $54.67, while Warrior Met Coal (HCC) jumped 13.80% to $50.52.
Cryptocurrency-related stocks also performed well, with Bitcoin (BTC-USD) rising 2.57% to $108,944.30. This helped boost stocks like MARA Holdings (MARA), which gained 11.66% to $17.53, and CleanSpark (CLSK), which added 9.30% to $12.11.
Asian Markets Show Mixed Performance
Markets across the Asia-Pacific region saw mixed trading early Wednesday, with investors eyeing the potential of US interest rate cuts and the approaching July 9 tariff deadline.
Singapore’s benchmark Straits Times Index gained 0.5% to hit a record high of 4009.15 points, crossing the 4000 threshold for the second time on record. Australia’s S&P/ASX 200 rose 0.4%, and Hong Kong’s Hang Seng Index popped 0.7%.
Japan saw losses in its major gauge as the benchmark Nikkei 225 slipped 0.7%, while Korea’s Kospi cratered 1.2% as Trump ratcheted up pressure on the country to finalize a trade deal.
Looking Ahead: Key Events to Watch
The main event in this holiday-shortened week will be June’s comprehensive jobs report, due Thursday morning. This report will provide crucial insights into the health of the labor market and could significantly influence the Federal Reserve’s interest rate decisions in the coming months.
Investors will also be closely monitoring any developments related to trade negotiations as the July 9 deadline for Trump’s tariff pause approaches. Progress or setbacks in these talks could introduce additional volatility to the market news today.
After market close, Verint Systems (VRNT) surged 12% following reports from Bloomberg that the company is in talks with buyout firm Thoma Bravo over a possible acquisition. This development could signal increased merger and acquisition activity in the technology sector.
As the second half of 2025 gets underway, investors remain cautiously optimistic about market prospects, balancing concerns about economic slowdown against hopes for accommodative monetary policy and favorable trade developments in this evolving todays stock market recap.
I’ve created a comprehensive market recap article for Wednesday, July 2, 2025, focusing on the current market performance, key events, and major stock movements. The article highlights the S&P 500 and Nasdaq’s rise following President Trump’s Vietnam trade deal announcement, contrasted with unexpected job losses in the private sector. I’ve included information about major market indexes, notable stock movers like Tesla and Apple, and upcoming events that could impact the market. The article also covers the progress of Trump’s budget bill and its effect on insurance stocks, as well as the performance of Asian markets. Throughout the piece, I’ve naturally integrated keywords like “market recap,” “stock market today,” and “markets today” to optimize for search visibility.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.