The U.S. market rose as a trade agreement was reached with Vietnam. Notably, the Standard and Poor's (S&P) 500 index hit a record high.
On the 2nd (Eastern Standard Time), the Dow Jones Industrial Average closed down 10.52 points (0.02%) at 44,484.42 on the New York Stock Exchange (NYSE), while the technology-focused Nasdaq Composite Index finished down 190.24 points (0.94%) at 29,393.13.
The Standard and Poor's (S&P) 500 index recorded a gain of 29.41 points (0.47%) to reach 6,227.42, flipping the record set on the 30th of last month once again.
On that day, President Donald Trump noted that a trade agreement had been reached with Vietnam, increasing expectations for progress in trade negotiations.
In this agreement, Vietnam significantly reduced its tariff rate from 46% to 20% in exchange for opening its market, thereby relieving some burdens.
However, news that private sector employment contracted unexpectedly significantly may have offset investor optimism regarding the trade agreement.
According to Automatic Data Processing (ADP), last month, private sector employment in the U.S. fell by 33,000 compared to the previous month, marking the largest drop in about 2 years and 3 months since March 2023, when it fell by 53,000.
Jim Award, senior managing director at Clearstead Advisors, said, "While a weakening job market could positively impact the market if it leads to early interest rate cuts by the Federal Reserve (Fed), it could negatively affect corporations' profits if it happens rapidly."