Wall Street Ends Holiday Week At Record Highs As Jobs, Trade Deal Lift Sentiment: This Week In Markets

Wall Street powered through the shortened holiday week, with both the S&P 500 and the Nasdaq 100 climbing to fresh record highs, as upbeat economic data and major policy shifts helped fuel investor confidence.

Optimism got an extra boost after President Donald Trump announced a surprise trade deal with Vietnam. The agreement includes a 20% tariff on all Vietnamese imports and a 40% tariff on transshipped goods. In return, U.S. companies will get full access to Vietnam's domestic market, a key win for American exporters.

Markets responded positively, with investors viewing it as a signal that Trump is favoring targeted trade enforcement over sweeping tariffs.

Read also: Trump’s Vietnam Trade Deal With 40% Tax On Transshipments May Result In Chinese Backlash, Say Economists: ‘…They Want Inflation’

Congress Passes Trump’s OBBBA, Economic Data Outperform

The U.S. Senate passed the bill on July 1, 2025, in a narrow 51–50 vote, with Vice President J.D. Vance casting the tie-breaking vote.

The House of Representatives followed on July 3, approving the final version of the bill in a 218–214 vote.

The White House announced that President Donald Trump will sign the bill into law on July 4, 2025, at 4 p.m. ET—a symbolic moment timed with Independence Day.

Labor market data surpassed expectations: Nonfarm payrolls rose by 147,000 in June, exceeding the projection of 110,000. The unemployment rate dropped to 4.1%, defying forecasts for a rise to 4.3% and hitting its lowest level since January. A big surprise came from government hiring, which added 73,000 jobs — the largest jump since March 2023.

On the industrial side, new orders for U.S. manufactured goods jumped 8.2% in May to $642 billion. This was the largest monthly surge since 2014 and the third-largest on record, as firms moved quickly to capitalize on the temporary suspension of "Liberation Day" tariffs.

This economic resilience complicates the Federal Reserve's outlook for near-term rate cuts. Chair Jerome Powell said the door remains open for a potential rate cut at the July 30 meeting, though he emphasized the importance of incoming data. Yet, after the robust jobs report, market-based odds for a cut fell sharply to just 7%.

Read also: Ray Dalio Warns US Debt Per Family Will Rise 85% To $425,000 Over Next 10 Years As House Passes Trump’s ‘Big Beautiful Bill’

In tech news, Microsoft Corp. MSFT announced a new round of layoffs affecting 9,000 employees — about 4% of its global workforce.

Michigan-based automakers were among the week's top gainers. Ford Motor Co. F jumped 10% this week after reporting a 14% year-over-year increase in second-quarter U.S. vehicle sales, reaching 612,095 units. The surge was led by strong demand for its Maverick and F-Series pickup trucks.

General Motors Co. GM also topped the week’s best-performer ranking after posting a 7% rise in quarterly sales to 746,588 vehicles.

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