U.S. stocks traded higher on Wednesday lifting the Dow Jones Industrials, the S&P 500 and the Nasdaq to new records as financial markets closed early for the July 4th holiday.
|I:DJI||DOW JONES AVERAGES||26966||+179.32||+0.67%|
|I:COMP||NASDAQ COMPOSITE INDEX||8170.231057||+61.14||+0.75%|
President Trump celebrated the milestone tweeting a “congratulations!” noting the 19 percent annual gain for the broadest measure of stocks.
S&P 500: 88th Record Close
Nasdaq Composite: 100th Record Close
Investors are now betting on a rate cut by the Federal Reserve is looking more likely. Private employers added just 102,000 jobs to their payrolls in June, according to the latest ADP National Employment Report — missing analyst expectations of 140,000. A potential sign the U.S. economy is losing some momentum. Initial claims for state unemployment benefits dropped by 8,000 to a seasonally adjusted 221,000 for the week.
As a result bond yields tumbled on fears of a global recession and expectations of interest rate cuts by central banks.
Even with the shortened trading session, deal-making is still on the table. Shares of Symantec Corp surged after sources told Reuters that chipmaker Broadcom is in advanced talks to buy the cybersecurity firm.
And in auto news, Tesla set new production and delivery records in the second quarter, a major achievement for the electric carmaker that has struggled to scale manufacturing operations. Overall, the firm delivered 95,200 cars, a 51 percent increase over the prior three months. Tesla shares jumped nearly 5 percent.
July is building on what was a strong June for U.S. investors with the Dow Jones Industrial Average registering the best performance since 1938, the S&P 500 the best since 1955 and the Nasdaq Composite the best since 2000.
The trade deficit in goods and services jumped 8.4 percent in May from a month earlier to a seasonally adjusted $55.52 billion in May, the Commerce Department said Wednesday.
U.S. financial markets are closed Thursday for the July 4th holiday.
FOX Business’ Ken Martin contributed to this report.