Stocks rise on strong US labor market, but 10-year T-note increases

From Nasdaq: 2025-07-03 13:16:00

The S&P 500, Dow Jones, and Nasdaq are all up today, supported by a stronger-than-expected US unemployment report. However, the 10-year T-note rose to 4.33%, reducing chances of a Fed rate cut. June non-farm payroll report beat expectations, with a +147,000 increase. The US unemployment rate fell to 4.1%, showing a strong labor market.

The May US trade deficit widened to -$71.5 billion, with exports and imports falling. The June ISM US Services Index rose to 50.8, beating expectations. US factory orders rebounded in May. The House is working on the reconciliation bill, which could add $3.3 trillion to US budget deficits over the next decade.

The Trump administration continues to push for Fed rate cuts. Trade talks with the EU and Vietnam are ongoing. Earnings season begins next week, with modest growth expected. Federal funds futures show a 5% chance of a rate cut at the July FOMC meeting. Overseas markets are mostly higher today.

Treasuries fell sharply after the strong US labor market reports. European government bond yields are lower. Stocks like Microsoft, Nvidia, and Amazon are up. FedEx rose after an upgrade, while ASML fell due to decreased chip demand. Datadog surged after being added to the S&P 500. Synopsys and Cadence Design rose on eased export restrictions in China. Olo gained on acquisition news.



Read more at Nasdaq: Stocks Rally on the Stronger-Than-Expected US Payroll Report