On Wednesday, U.S. stocks experienced a minor uptick, setting another record high. The S&P 500 increased by 0.5%, marking its third record in four days. Meanwhile, the Dow Jones Industrial Average dipped by 10 points, or under 0.1%, and the Nasdaq composite saw a 0.9% rise.
Tesla played a significant role in the marketโs positive movement, with its shares climbing 5% after announcing impressive delivery numbers for its Model 3 and Model Y vehiclesโnearly 374,000 units in the last quarter, which surpassed analyst expectations despite a 13% drop in overall sales from the previous year. Concerns have surged regarding CEO Elon Muskโs political involvement possibly deterring potential customers.
Constellation Brands also saw a 4.5% rise, even though it reported lower quarterly profits than anticipated. The company cited diminished growth in sectors such as construction, affecting the demand for its beer products. Despite this, the seller of Modelo beer and Robert Mondavi wine maintained its financial outlook for the coming year.
However, Centene experienced a 40.4% decline, bearing its worst performance since its 2001 market introduction. The healthcare firm retracted its profit forecasts, pointing to worse-than-expected health trends in several states where it operates. Overall, the S&P 500 gained 29.41 points to reach 6,227.42. The Dow Jones decreased by 10.52 points to 44,484.42, and the Nasdaq jumped 190.24 to 20,393.13.
In the bond market, U.S. Treasury yields presented mixed results as investors anticipate Thursdayโs significant employment report. The consensus suggests more jobs were filled than cut last month, though at a slower hiring rate compared to May.
A surprisingly weak report from ADP cast doubts over potential outcomes, indicating private sector job cuts of 33,000, whereas economists predicted an increase of 115,000 jobs. ADPโs chief economist, Nela Richardson, noted that although layoffs remain uncommon, there is a reluctance in hiring and replacing departing staff.
Although the ADP report is not always a reliable predictor of the U.S. governmentโs comprehensive job data, there remains hope for more optimistic figures on Thursday. Concerns linger that President Donald Trumpโs tariffs could eventually lead employers to halt hiring. Many proposed import taxes are temporarily stayed but are set to take effect soon, barring treaties to mitigate them, posing risks to the economy and inflation rates.
On Wednesday, President Trump mentioned an agreement with Vietnam, permitting U.S. goods to enter at no tariffs, while Vietnamese goods face a 20% U.S. levy. This deal benefited companies importing from Vietnam, such as Nike, which saw a 4.1% stock riseโhalf of its branded footwear was produced in Vietnam during the 2024 fiscal year.
Other factors potentially impacting the job market include possible deportations of 350,000 Venezuelans, following the U.S. governmentโs end of their protected status. Goldman Sachs economist David Mericle indicates this alone may hinder payrolls by 25,000 jobs, with his job report prediction less optimistic than many peersโ.
The yield on the 10-year Treasury note rose slightly to 4.28% from 4.26% on Tuesday, while the two-year yield, closely related to Federal Reserve policy expectations, stayed at 3.78%. Possible weakening in the job market could prompt the Fed to lower interest rates, although the Fed prefers waiting to evaluate tariff impacts before further rate reductions, despite President Trumpโs ongoing calls for immediate rate cuts.
Abroad, stock market indexes showed varied performances as the looming tariff implementation deadline approaches. Franceโs CAC 40 increased by 1%, Hong Kongโs Hang Seng rose 0.6%, whereas Japanโs Nikkei 225 and South Koreaโs Kospi declined by 0.6% and 0.5%, respectively.