US stocks closed the trading session on July 2 in historic green as the two S&P 500 and Nasdaq indices together set an all-time high closing price.
The boost comes from the strong increase of technology stocks, along with information about trade agreements between the US and Vietnam - a factor that helps ease worries about prolonged trade tensions.
Nasdaq increased by 190.24 points, equivalent to 0.94%, to a record of 20,393.13 points. The S&P 500 increased by 29.41 points (0.47%) to 6,227.42 points. Meanwhile, the Dow Jones index decreased slightly by 10.52 points, to 44,484.42 points, still less than 1.2%, from the historical peak (December 4, 2024).
Information about the trade agreement between the US and Vietnam was announced right before the lunch break, bringing a new breeze to the market that was already gloomy due to weaker-than-expected jobs reports.
In a post on the Truth Social account on July 2, President Donald Trump wrote that he had reached a trade agreement with Vietnam after holding phone talks with General Secretary of the Communist Party of Vietnam To Lam.
This will be a major cooperation agreement between our two countries. According to the agreed terms, all Vietnamese goods entering the US will be subject to a tax rate of 20%, and the tax rate for transited goods will be 40%".
According to President Trump, Vietnam will open the market for the US and SUVs, also known as large-duty motor vehicles.
There is a certain feeling of relief from the trade progress. The agreement with Vietnam is good news, said Michael Arone, chief strategist at State Street Global Advisors.
The US administration also revealed that a trade deal with India could be announced soon, although other partners are uncertain to sign before July 9.
Nasdaq recorded a strong increase thanks to three technology giants: Nvidia, Apple and Tesla. Tesla alone increased by 5%, although the company has just announced that electric vehicle sales in the second quarter decreased sharply. Traders said that the decline was not as bad as previously forecast, helping stocks recover after a series of declines of more than 20% since the beginning of the year.
However, not all stocks benefit. Centene - one of the largest health insurance companies in the US - has plummeted to 40%, down to its lowest level in 8 years, after withdrawing its profit forecast for 2025 due to stronger-than-expected market insurance package revenue decline.
In addition to trade factors, market sentiment is also dominated by expectations that the US Federal Reserve (Fed) will soon cut interest rates. The private sector employment report released before the session showed that the number of new jobs in June suddenly decreased, while the May data was also adjusted down sharply.
Total trading volume in the whole market reached nearly 17 billion shares, only slightly lower than the average of the last 20 sessions. The New York Stock Exchange recorded 358 stocks setting new peaks, while only 41 stocks hit bottom.
