Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – July 06, 2025 at 07:01 AM

U.S. stocks rose notably over the past week, with fresh record highs for both the S&P 500 and Nasdaq Composite. These gains were driven primarily by a stronger-than-expected June jobs report as well as robust optimism surrounding trade deals and expectations around the Federal Reserve’s interest rate decisions.

The Dow Jones Industrial Average advanced by 344.11 points or 0.77%, closing at 44,828.53. The S&P 500 added 0.83% to close at 6,279.35, while the Nasdaq gained 1.02% and ended at 20,601.10. These indices have respectively posted gains of 2.3%, 1.7%, and 1.6% for the week.

Nonfarm payrolls increased by 147,000 in June, boosting confidence in the U.S. economy’s resilience amidst fast-changing trade policy and geopolitics. Meanwhile, the unemployment rate fell to 4.1%, below the expected 4.3%.

A strong jobs report reduced expectations for the Federal Reserve to cut interest rates shortly. Traders priced in a roughly 95% chance that the Fed would hold steady at their meeting later this month. Moreover, President Donald Trump’s recent U.S.-Vietnam trade deal and his tax megabill, which passed the Senate on Tuesday, were also significant market movers.

Despite the enhanced jobs report for June, and the passage of Trump’s tax bill, private payrolls decreased by 33,000, stirring some concerns about the economy’s state. Though worries abound if the decline in private payroll precedes a weakening of the labor market capable of compelling the Federal Reserve to cut rates, stock markets closed nearly in positive territory, absorbing the impacts quite smoothly.

Notably, the U.S.-Vietnam trade deal brought a significant boost to the stocks. Specifically, shares of Nike, which manufactures approximately half of its footwear in Vietnam and China, rose by 4%.

For the week ahead, investors eagerly anticipate potential future deal announcements as President Trump’s early July deadline on his 90-day tariff pause draws nearer. Despite concerns about the president’s negotiation approach, markets remain optimistic.

This week, U.S. stocks recorded new highs due to optimism over trade deals and expectations for the Federal Reserve to lower interest rates. The Dow Jones Industrial Average had a marginal increase, while the S&P 500 rose by nearly 0.5%, closing at a record high of 6,227.42. The Nasdaq Composite also moved up by over 0.9%, closing at a record high of 20,393.13.

This rise was strongly influenced by President Trump’s announcement of a trade deal with Vietnam. This led to investor hopes for more agreements before the July 9 tariff pause deadline. However, the labour market showed signs of a slowdown in June, with 33,000 jobs unexpectedly cut by U.S. private employers.

Stock gainers this week included Apple (AAPL), the shares of which rose after an upgrade by Jefferies (JEF) analysts. Tesla (TSLA) shares also climbed after the electric vehicle maker produced more vehicles than expected in the second quarter, despite plummeting sales.

Nvidia (NVDA) and Meta (META) also hit new records, contributing to the record highs of the S&P 500 and the Nasdaq Composite. These record highs were the first since February, marking a recovery from the year’s tariff-triggered stock swings.

While there is still no certainty of a rate cut in July, most Fed watchers bet on at least one rate cut by September, with over 20% expecting two cuts by the same meeting. In the meantime, Trump’s proposed $4.5 trillion tax cut bill is under Senate negotiations. Although it is estimated to add $3.3 trillion to the deficit over a decade, there is pressure to get party holdouts to back the legislation.