Market Wrap | US Stocks Surge on Strong Jobs Data and Rate Cut Hints

On July 3, 2025, the U.S. stock market saw significant gains with the S&P 500 rising 0.83%, the Dow Jones Industrial Average increasing 0.77%, and the Nasdaq Composite surging 1.02%. This bullish sentiment was driven by strong labor market data, as U.S. non-farm payrolls increased by 147,000 in June, surpassing the forecast of 110,000. This robust employment growth indicated a resilient labor market, which bolstered investor confidence. Additionally, the U.S. Treasury Secretary hinted at potential larger rate cuts in September if the Federal Reserve does not act sooner, suggesting a possible shift in monetary policy. This news further fueled market optimism, contributing to the overall positive performance of the major indices.

In today's market, the technology and financial sectors outperformed the S&P 500, while the consumer staples and materials sectors moved in the opposite direction of the S&P 500.

Oracle shares rose 3.19% as the company reported another quarter of impressive cloud infrastructure growth. ServiceNow shares climbed 3.46% following Morgan Stanley's increased price target, indicating a positive outlook for the company.

Global Interactive Technologies saw a remarkable surge, with its stock price rising by approximately 135.58% due to massive trading volume and speculation. Regencell Bioscience also experienced significant growth, with shares rising by around 121.91% driven by high demand and substantial insider ownership. Inovio Pharmaceuticals, however, faced a substantial drop of 37.85% as public offerings of additional shares put downward pressure on the stock price due to potential shareholder dilution. GIBO Holdings Ltd (GIBO) dropped by approximately 29.60% after modest gains previously.

The Federal Reserve's reverse repurchase agreement usage dropped to $214.665 billion, down from $237.307 billion, indicating reduced liquidity absorption. U.S. Treasury yields flattened after non-farm payroll data showed a 147,000 increase in June, surpassing the previous 139,000, impacting Fed rate expectations. Traders have reduced bets on a July rate cut, with a 74.7% probability of rates remaining unchanged. Meanwhile, AMD's acquisition of Nvidia's high-end AI chip, the GB300 NVL72, highlights technological advancements in AI, potentially influencing tech sector dynamics. Additionally, the U.S. government has lifted restrictions on ethane exports to China, signaling a possible trade tension ease.