Pressure on House to pass Trump’s ‘Big Beautiful Bill’ by July 4 deadline
The pressure is one for House Republicans to pass President Trump’s massive tax cuts and spending bill by his July 4 deadline.
Fox – 32 Chicago
U.S. stocks opened higher, with the broad S&P 500 and tech-heavy Nasdaq scoring fresh record highs, after surprisingly strong hiring in June and prior months fueled optimism for the economy.
Employers added 147,000 new jobs, better than economists’ mean forecast for 110,000 jobs, last month. The unemployment rate fell to 4.1%, instead of inching up to 4.3% as predicted by economists, from 4.2% in May. Prior month revisions further painted a rosier picture. The number of jobs added in April and May was a combined 16,000 higher than prior estimates.
“These numbers demonstrate economic resilience despite expectations for slowdowns on the backs of tariff and fiscal uncertainty,” said Lara Castleton, U.S. Head of Portfolio Construction and Strategy at Janus Henderson Investors.
At 9:33 a.m. ET, the blue-chip Dow added 0.24%, or 108.08 points, to 44,592.50; the S&P 500 gained 0.45%, or 27.80 points, to 6,255.22; and the tech-laden Nasdaq rose 0.55%, or 112.29 points, to 20,505.42. The benchmark 10-year yield edged up to 4.334%.
The strong report comes on the heels of a negative private payrolls report. The private sector unexpectedly lost 30,000 jobs in June, badly missing expectations for a 100,000 increase, according to payrolls processing firm ADP.
But the government’s solid June report “confirms that the labor market remains resolute and slams the door shut on a July rate cut,” said Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments.
Trade hopes and tax bill
Investors also will keep an eye on trade negotiations and progress of the mega tax bill backed by President Donald Trump in the House of Representatives.
The S&P 500 and Nasdaq each scored record highs after Trump said in a social media post that the U.S. had struck a trade deal with Vietnam. The deal includes a 20% tariff on imports from the country. Goods that originated in another country but were transferred to Vietnam for final shipment to the U.S. will be levied 40%.
After the bell, chip software maker Synopsys and Cadence said the U.S. government has rescinded its export restrictions on chip-design software to China.
Both these moves eased fears over prolonged trade tensions and tamed inflation fears. Economists had predicted inflation could spike higher if Trump enacted his highest tariffs.
Meanwhile, the House continues to debate the sweeping tax bill to try to get it to the president’s desk by July 4. The bill’s expected to face a tight vote as some House members remain critical of Medicaid and food assistance cuts as well as the cost of the bill.
Corporate news
- Datadog will replace Juniper Networks in the S&P 500 on July 9.
- Electric vehicle maker Lucid Group said it delivered more vehicles in the second quarter.
- Online travel company Tripadvisor shares surged after The Wall Street Journal reported, citing people familiar with the matter, that activist investor Starboard Value has taken a stake of more than 9%.
(This story was updated with new information.)
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
