
- Indices
- Stocks
Wall Street indices ended the day higher
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Key points:
- Tesla and other large-cap growth stocks led the gainers.
- Trading volumes were low as investors awaited employment data and the July 4 holiday.
- The market will close early on Wednesday and remain closed through Thursday (Independence Day).
Major US stock indices showed growth on Tuesday, July 2, ending the first half of the week on a positive note. The rise in stock prices of Tesla and other large-cap growth companies has become the main driver of the market.
Trading was on relatively low volumes as investors remained wary ahead of the upcoming Fourth of July holiday and awaited the release of important US non-farm payrolls data for June, which will be released on Friday.
The Dow Jones Industrial Average rose 162.33 points, or 0.41%, to close at 39,331.85. The S&P 500 added 33.92 points, or 0.62%, to 5,509.01. The Nasdaq gained 149.46 points, or 0.84%, to 18,028.76.
Traders keep an eye on US employment levels
According to the Job Openings and Labor Turnover Survey (JOLTS), May saw an increase in job vacancies after a significant decline in the previous two months. However, against the backdrop of a slowdown in economic activity, the dynamics of layoffs has intensified.
The data is the first in a string of U.S. jobs reports this week, culminating with Friday’s release of nonfarm payrolls data for June. This data will be critical to assessing how resilient the U.S. labor market will be in the face of continued high interest rates.
Trading volumes are expected to be light throughout the week, with the stock market closing early on Wednesday and remaining closed all day on Thursday for Independence Day.
Mega-cap stocks surged
Tesla shares jumped to their highest level since early January after the company reported a smaller-than-expected decline in electric vehicle deliveries in the second quarter. The results turned out to be better than forecasts, which strengthened investor confidence.
Shares of other major companies such as Apple, Amazon.com and Alphabet also rose. At the same time, US Treasury yields fell.
At the same time, shares of Nvidia, a leader in the field of artificial intelligence chips, fell, while the performance of other companies in the sector was mixed. It’s worth noting that Nvidia shares have risen more than 147% since the beginning of the year.
Investors are divided over the sustainability of the current market rally, which has seen the S&P 500 rise 14.75% in the first half of the year.
Separately, it is worth noting that Paramount Global shares jumped 5.7% after news of a possible takeover of the media giant by billionaire Barry Diller’s digital media conglomerate IAC.
Trading volume on US exchanges was 9.89 billion shares, below the average for the last 20 trading days.
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