U.S. stock futures trended higher early Wednesday after President Trump’s tax and spending bill narrowly passed the Senate and headed to the House for a vote. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.34%, 0.32%, and 0.33%, respectively, at 4:01 a.m. EST, July 2.
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In Tuesday’s regular trading, the Nasdaq 100 closed with a 0.84% loss, while the Dow Jones climbed nearly 400 points, and the S&P 500 inched lower by 0.03%.
The tech sector in the S&P 500, which includes Nvidia (NVDA), Palantir Technologies (PLTR), and Advanced Micro Devices (AMD), fell over 1% on Tuesday, along with the communications services sector. Investors instead shifted toward health care and materials stocks. Gains in Amgen (AMGN), Johnson & Johnson (JNJ), and UnitedHealth Group (UNH) helped lift the 30-stock Dow.
President Donald Trump’s tax-and-spending bill passed the Senate on Tuesday but still faces resistance in the House. HSBC’s Jose Rasco said this could bring more short-term market volatility, especially in bonds, but he expects stocks to bounce back once things settle and the Fed takes action. Investors are now hoping the U.S. will reach deals with other countries soon, as Trump’s 90-day pause on major tariffs is set to end next week.
On Wednesday, investors are watching for ADP’s private payrolls report, set to be released before the market opens. Economists surveyed by Dow Jones expect 120,000 jobs were added in June, a big jump from May’s 37,000. The key highlight of this holiday-shortened week will be June’s official jobs report, due Thursday morning.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.27%. Simultaneously, WTI crude oil futures are trending lower, hovering near $65.36 per barrel as of the last check. At the same time, the Gold Spot U.S. Dollar Price decreased to nearly $3,328 per ounce on Wednesday.
Elsewhere, European stocks opened higher on Wednesday as investors looked at trade talk progress and watched the ECB (European Central Bank) forum for clues on future policy moves.
Notably, the market will be closed on Friday in observance of Independence Day.
Asia-Pacific Markets Traded Mixed Today
Asia-Pacific markets traded mixed on Wednesday as investors reacted to comments from U.S. Federal Reserve Chair Jerome Powell.
Hong Kong’s Hang Seng Index was up 0.54%. Japan’s Nikkei and Topix indices declined 0.56% and 0.21%, respectively. At the same time, China’s Shanghai Composite and Shenzhen Component indices closed lower by 0.09% and 0.61%, respectively.
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