Tech stocks boost Nasdaq, S&P 500 to record highs

The S&P 500 and Nasdaq have closed at record highs, boosted by gains in technology stocks and a trade agreement between the US and Vietnam that eased concerns over prolonged trade tensions. The Dow Jones Industrial Average closed slightly lower on Wednesday but remained within 1.18 per cent of its December 4 record close. Wall Street has logged a string of record highs in recent weeks, reflecting a backdrop of choppy trading sessions and strong investor appetite for risk amid uncertainties around inflation, deficit and policy. Nasdaq renewed its June 30 record, boosted by Nvidia, Apple and Tesla. TSLL, a high-risk leveraged exchange-traded fund that delivers twice the daily return of Tesla stock and is designed for short-term trading, was among the most negotiated stocks. Investors will now look ahead to the non-farm payrolls report on Thursday for clues on how soon the Federal Reserve could lower borrowing costs. A weakening economy “is a very mixed bag”, said Jim Awad, senior managing director at Clearstead Advisors in New York. “Employment softening and inducing the Fed to lower rates would be a positive,” he said. “But if it softens too much, that would be a negative for growth and profits.” Trump’s massive tax-and-spending bill headed to the US House of Representatives for possible final approval after the Senate passed the legislation. Nonpartisan analysts say it will add $US3.4 trillion to the national debt over the next decade. Markets opened lower after a non-key indicator showed US private payrolls fell unexpectedly in June and job gains in the prior month were smaller than initially thought. But they reversed course before lunch time as the US and Vietnam struck a trade agreement that sets 20 per cent tariffs on many of the Southeast Asian country’s exports. The Trump administration has teased that a deal with India is also coming soon, but has said others may not be ready by July 9. Investors have been closely watching trade developments, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston. “There is some relief in regards to progress on trade. The deal with Vietnam was welcomed news,” Arone said. The S&P 500 gained 29.41 points, or 0.47 per cent, to 6,227.42 and the Nasdaq Composite gained 190.24 points, or 0.94 per cent, to 20,393.13. The Dow fell 10.52 points, or 0.02 per cent, to 44,484.42. There were 358 new highs and 41 new lows on the New York Stock Exchange. Tesla rose five per cent, bouncing after a drop early this week, even as the electric vehicle maker posted a big drop in second-quarter deliveries. Some traders said the numbers were less severe than analysts’ bleak forecasts. The stock has shed more than 20 per cent this year. Centene tumbled 40 per cent to the lowest level in eight years after the health insurer said it had withdrawn its 2025 earnings forecast after data showed a significant drop in expected revenue from its marketplace health insurance plans. The focus is on the more comprehensive non-farm payrolls report on Thursday, a day earlier than usual, with markets closed on July 4 for Independence Day. The reading is expected to show US job growth cooled in June and the unemployment rate ticked up to 4.3 per cent, according to a Reuters poll of economists. “Investors are likely expecting this will push the Fed towards cutting rates sooner rather than later,” Arone said. Volume on US exchanges was 16.95 billion shares, compared with the 17.82 billion average for the full session over the last 20 trading days.