Stocks hit record highs on weak labor market data, with surging gilt yields in UK

From Yahoo Finance: 2025-07-01 22:16:00

Global stocks reached a record high on Wednesday after U.S. data showed a weak labor market. The ADP National Employment Report revealed private payrolls dropped by 33,000 jobs, well below the expected increase. Market expectations for a July rate cut by the U.S. Federal Reserve rose to over 27%.

Wall Street saw the S&P 500 and Nasdaq close at record highs, with Tesla bouncing back. The Dow Jones fell slightly, while the S&P 500 and Nasdaq rose. MSCI’s global stocks gauge climbed, and the STOXX 600 index closed higher, driven by renewable energy and luxury stocks.

Longer-dated U.S. Treasury yields rose, as British government bond yields surged. The finance minister’s distress in parliament led to a jump in yields. Sterling dropped, and the dollar index rose. President Trump announced a 20% tariff on Vietnam, with eyes on trade deals with other countries.

Investors also focused on Trump’s tax and spending bill, expected to add $3.3 trillion to the national debt. Republicans in the House prepared for a vote on the bill. U.S. crude and Brent prices rose due to Iran’s suspension of cooperation with the U.N. nuclear watchdog.

Read more: Stocks climb to record, gilt yields surge on finance minister uncertainty