Stock Market Update Wednesday July 2, 2025

Stock Market Update Wednesday July 2, 2025 The stock market continued the sector rotation that started on Monday. Money moved out of high-performing sectors and into undervalued ones. The major stock indexes closed higher, even though the market breadth was mixed. The S&P 500 rose slightly (+0.5%), with strength in several sectors offsetting weakness in others. Small-cap stocks did better than larger ones, with the Russell 2000 increasing by +1.3%. This was the second day in a row that small-cap stocks led the market, which could mean investors are becoming more willing to take risks and are investing in areas that benefit from economic growth. The Nasdaq 100 also rose (+0.7%), showing that large technology companies are still strong. However, some of the stocks that rebounded sharply on Monday gave back some of those gains, indicating that there was a wide range of performance within the market.

Overall, market breadth was slightly positive, and despite some ups and downs during the day, the market ended on a positive note, suggesting that there is still support for stock prices. The 10-year Treasury yield increased slightly, indicating that interest rates may rise due to expectations of a strong economy. Crude oil prices rose a bit, while the U.S. dollar was unchanged, suggesting that currency markets are waiting for important economic data. The VIX volatility index decreased slightly to 16.63, remaining low as investors await Friday’s jobs report and the upcoming holiday weekend.

Key Macro Data This Week:

• Thu 7/3, 8:30 AM ET:

  • June Non-Farm Payrolls: +110K expected

  • May Trade Balance: -$71B expected

• Thu 7/3, 9:45 AM ET:

  • June S&P Global Services PMI (Final): 53.1 expected

• Thu 7/3, 10:00 AM ET:

  • June ISM Services PMI: 50.8 expected

  • May Durable Goods Orders (Final, MoM): +16.4% expected

• Fri 7/4: Independence Day – Markets Closed