Overview

• President Trump announced a pact eliminating US duties on American exports to Vietnam and imposing at least 20% tariffs on Vietnamese goods, averting harsher reciprocal levies due July 9.
• The US economy added 147,000 jobs in June and saw unemployment fall to 4.1%, beating the 110,000-job consensus and offsetting earlier ADP-Stanford data showing 33,000 private-sector cuts.
• Nasdaq and S&P 500 indexes reached intraday record highs on July 3 while the Dow posted modest gains as markets absorbed the trade agreement and solid labor figures.
• Yields on the US 10-year Treasury climbed above 4.3% as investors weighed potential inflationary impacts of new tariffs alongside growth signals from the jobs report.
• Attention now turns to the July 9 deadline for tariffs on 54 trading partners and the Federal Reserve’s forthcoming decisions on interest rates