S&P Peaks on New Trade Deal with Vietnam

The S&P 500 rose on Wednesday after President Donald Trump announced a U.S.-Vietnam trade deal. However, investor optimism was limited due to a new report showing private payrolls surprisingly decreased in June, raising concern over the state of the U.S. economy.The Dow Jones Industrials slid 10.52 points to 44,484.42The much-broader index strengthened 29.41 points to 6,227.42The NASDAQ Composite added 190.24 points to 20,393.12.The S&P 500 saw a boost after Trump posted on Truth Social about the deal between the U.S. and Vietnam. The deal includes a 20% tariff on imports from Vietnam. Shares of Nike, which manufactures approximately half of its footwear in Vietnam as well as China, were also 4% higher after the announcement.The private sector lost 33,000 jobs last month, according to the latest report by ADP. That marks the first monthly decline in ADP’s payrolls report since March 2023. Economists polled by Dow Jones expected payrolls to grow by 100,000.The report comes with the stock market near record highs despite concerns that lingering trade tensions between the U.S. and other countries could slow U.S. and global economic growth.To be sure, the ADP report has a lackluster record predicting the government’s monthly jobs report, which is due out Thursday. Economists expect growth of 110,000 jobs for June.Prices for the 10-year treasury were lower, raising yields to 4.29% from Tuesday’s 4.25%. Treasury prices and yields move in opposite directions. Oil prices took on $1.76 to $67.21 U.S. a barrel. Gold prices climbed $18.40 to $3,362.20 U.S. an ounce.