The stock market rally saw the S&P 500 hit a new peak, propelled by a major AI deal for Oracle and relief over Tesla’s deliveries, while a U.S.-Vietnam trade announcement boosted apparel stocks like Nike.
NEW YORK – The stock market pushed higher in a mixed but broadly positive session Wednesday, with strong performances from key tech players and industrials driving the S&P 500 to a new record high. The rally was fueled by company-specific catalysts, including a blockbuster AI deal for Oracle (ORCL) and better-than-feared Q2 deliveries from Tesla (TSLA).
Investors are now turning their full attention to the pivotal June jobs report, due before Friday’s open, which is expected to heavily influence the Federal Reserve’s path on interest rates. Dow Jones futures, S&P 500 futures, and Nasdaq futures were all little changed overnight, signaling a market holding its breath for the crucial economic data.
Tech and Trade Deals Drive the Rally
Wednesday’s market action was defined by several key drivers:
-
Oracle’s AI Windfall: Shares of Oracle surged 5% to a new all-time high after a report revealed that AI startup giant OpenAI will significantly expand its use of Oracle’s data centers as part of the “Stargate” initiative. The news underscores Oracle’s growing clout in the AI infrastructure race.
-
Tesla’s Delivery Relief: Tesla stock leaped 5%, retaking its 200-day moving average after reporting 384,122 deliveries for the second quarter. While down year-over-year, the figure was largely in line with consensus and well above more pessimistic recent forecasts, providing relief to investors.
-
Vietnam Trade Deal Boosts Apparel: President Donald Trump announced a preliminary U.S.-Vietnam trade deal that would impose a 20% tariff on Vietnamese goods. While a headwind, the news was seen as a positive outcome compared to potentially much higher duties, sparking a relief rally in apparel makers like Nike (NKE) and On Holding (ONON), which rely heavily on Vietnamese manufacturing.
-
Datadog Joins the S&P 500: Shares of Datadog (DDOG) jumped in late trading after S&P Global announced the cloud monitoring company will be added to the prestigious S&P 500 index on July 9.
All Eyes on the Jobs Report
The market’s next move hinges on the Labor Department’s June employment data, scheduled for release at 8:30 a.m. ET. Economists are forecasting that nonfarm payrolls growth slowed to 115,000, with the unemployment rate ticking up to 4.3%. A weaker-than-expected report would intensify calls for the Federal Reserve to cut interest rates later this year.
This follows a surprisingly weak ADP private payrolls report on Wednesday, which showed a loss of 33,000 jobs, though the report has a spotty track record of predicting the official government data.
Market Internals Show Broad Strength
The rally on Wednesday was healthy under the surface. The Nasdaq Composite climbed 0.9%, bouncing back from a Tuesday sell-off, while the small-cap Russell 2000 jumped 1.3%. Advancers led decliners by a two-to-one margin on the Nasdaq and nearly three-to-one on the NYSE, indicating broad participation.
AI chip and hardware stocks were standouts, with the VanEck Vectors Semiconductor ETF (SMH) jumping nearly 2%. Metals and mining stocks also had a strong day, with the SPDR S&P Metals & Mining ETF (XME) rallying over 4%. With the market at all-time highs, investors are advised to maintain exposure while being mindful of volatility and managing risk across their portfolios.
