U.S. stocks experienced a general upward trend on Wednesday as investors evaluated new economic data, trade agreements, and corporate news. The S&P 500 advanced by 0.3% to achieve a new record high, the Nasdaq 100 gained 0.6%, while the Dow Jones Industrial Average remained largely unchanged. President Trump announced a revised trade agreement with Vietnam, reducing tariffs to 20% from the previous 46% effective from "Liberation Day." However, discussions with Japan have stalled, and the uncertainty continues due to ongoing negotiations with the European Union, particularly with aggressive tariffs set to resume next week.
Meanwhile, a report from ADP indicated an unexpected decline in private sector employment, contributing to growing evidence of a weakening labor market ahead of the anticipated jobs report due tomorrow. On the fiscal side, attention is focused on the lower House's pending decision regarding the spending bill passed by the Senate, which proposes an increase of $3.3 trillion to the U.S. national debt.
In the tech sector, stocks rebounded following a downturn the previous day, although Microsoft remained steady following its announcement to cut 9,000 jobs. Conversely, Nike and Lululemon witnessed a surge in their stock prices as investors reacted positively to the decision to forego higher Vietnam tariffs.
