U.S. stock markets delivered a mixed performance on Wednesday, July 2, 2025, as investors balanced strong gains in technology shares against signs of a cooling labor market. The S&P 500 rose 0.5% to close at a record 6,227.42, while the Nasdaq Composite gained 0.9% to 20,393.13, also marking a new high. Meanwhile, the Dow Jones Industrial Average edged down by less than 0.1%, closing at 44,484.42 .
The technology sector led the market’s advance, with notable performances from major players. Apple and Nvidia each climbed over 2%, pushing their market capitalizations above $3 trillion. Tesla shares surged nearly 5% despite reporting a 13.5% year-over-year decline in second-quarter vehicle deliveries. The company delivered 384,122 vehicles, slightly below analyst expectations, but investors appeared relieved the figures weren’t worse .
Quantum computing stocks also saw significant gains. Rigetti Computing’s stock jumped 9% after Cantor Fitzgerald initiated coverage with an “Overweight” rating and a $15 price target. The firm highlighted Rigetti’s advancements in superconducting quantum systems and a recent $250 million partnership with Quanta Computer .
Conversely, Adobe’s stock fell 4.5% following a downgrade from Rothschild & Co Redburn, which cited increasing competition from generative AI tools and the IPO filing of design rival Figma. The analyst expressed concerns over Adobe’s ability to maintain its dominance in creative software amid these emerging threats .
Figma’s confidential IPO filing comes after a failed $20 billion acquisition attempt by Adobe, which was blocked by regulators in late 2023. The move signals Figma’s intent to compete independently in the design software market .
Economic data released Wednesday added to investor caution. The ADP National Employment Report showed a surprising loss of 33,000 private-sector jobs in June, defying expectations of a 100,000 job gain. This marks the first decline in private employment since March 2023 and raises concerns about the strength of the labor market .
Investors are now closely watching the upcoming June employment report from the Labor Department, expected to show an increase of 110,000 nonfarm payrolls and an unemployment rate of 4.3%. These figures will be critical in shaping expectations for the Federal Reserve’s next moves on interest rates .
Trade news also influenced market movements. President Donald Trump announced a new trade agreement with Vietnam, allowing U.S. goods duty-free access while imposing a 20% tariff on Vietnamese imports. The deal boosted shares of companies with significant exposure to Vietnam, such as Nike, which saw its stock rise 4.1% .
While technology stocks continue to drive market gains, concerns about the labor market and global trade tensions are creating a complex environment for investors. The upcoming employment report will be a key indicator of economic health and could influence the Federal Reserve’s policy decisions in the coming months.
