Stock Market Update Thursday July, 3, 2025 Equity markets rallied to fresh record highs, buoyed by a stronger-than-anticipated June Non-Farm payrolls report. Despite some early signs of sector rotation at the outset of the quarter, the S&P 500 surged +1.8% for the week, significantly outperforming subdued volatility expectations. On the session, the S&P 500 gained +0.8%, the Nasdaq-100 advanced +1.0%, and the Russell 2000 added +0.9%, reflecting broad-based strength across large- and small-cap equities.
🔺 Rates & FX:Treasury yields climbed sharply in response to the robust labor data, with the benchmark 10-year yield (US10Y) rising to 4.35%, signaling increased market confidence in the economic outlook and pushing back expectations for imminent Fed rate cuts. The U.S. dollar firmed for the first time in several weeks, with the DXY index strengthening to 97.15 amid higher rate differentials.
🪙 Commodities & Volatility:Gold edged modestly lower as yields and the dollar moved higher, while crude oil also slipped slightly, remaining range-bound. Meanwhile, the CBOE Volatility Index (VIX) appears to have found a near-term support level, ending the week roughly unchanged at 16.54—suggesting a cautious but stable risk environment.
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