The three major US stock indices registered gains at the opening of trading today, Thursday, July 3, benefiting from better-than-expected US labor market figures. The S&P 500 hit a new record high amid anticipation of the passage of the tax and spending bill in the final session of the week, which coincides with the US Independence Day holiday tomorrow, Friday.
Most of the S&P 500 sectors rose today, with the exception of the consumer staples sector. The technology sector led the index’s gains, rising by about 0.73%, benefiting from the easing of US restrictions on semiconductor software exports to China. The healthcare sector rose by 0.15%, the financial sector rose by 0.29%, the energy sector rose by 0.11%, the industrial sector rose by 0.63%, and the utilities sector rose by 0.49%.

In terms of stock movements, chip and software stocks rose today after the United States decided to ease restrictions on semiconductor software exports to China. Shares of Cadence Design Systems and Synopsys rose more than 4%, as the two companies hold a market share exceeding 30% in this sector. Lucid’s stock rose more than 5% after the company announced a 38% increase in sales in the second quarter.

In terms of economic data, the report issued today by the US Bureau of Labor Statistics showed that the US economy added 147,000 jobs in June, while the unemployment rate declined by 0.1 percentage points to 4.1%.

Today’s surprising numbers, which came in better than expected, especially after negative private sector figures on Wednesday, changed market expectations for an interest rate cut. According to the CME FedWatch tool, expectations for a rate cut have fallen to only two in September and December, compared to three before today’s figures. Expectations for a cut in July have fallen to below 5%, compared to 25% before today’s figures.
On the other hand, markets are monitoring developments in the trade agreements being negotiated by Trump as the deadline for a tariff truce approaches on the 9th of this month. The agreement between Vietnam and the United States has supported market sentiment.

Investors are also awaiting the final vote in the House of Representatives on the tax and spending bill, with House Speaker Mike Johnson indicating that the bill has the necessary support and could be passed by Friday, the deadline set by Trump.

The Dow Jones Industrial Average (Dow) is trading up by about (241) points at 44,726, with gains of about 0.54%, while the S&P 500 Index (S&P500) is recording gains of 29 points at 6,256, with a rise of about 0.47% after recording its sixth record close in 2025 yesterday, Wednesday, and recording a new record level today. The Nasdaq Index (Nasdaq) is rising by (130 points) at 20,523, recording gains of about 0.64%.