U.S. stock futures pointed to a slightly higher open on Thursday, as investors digested stronger-than-expected employment data and recent bullish momentum in tech stocks.
Buying interest ahead of the bell was supported by new figures from the U.S. Labor Department, which showed job creation in June exceeded analyst expectations. According to the report, non-farm payrolls rose by 147,000, building on an upwardly revised 144,000 jobs added in May.
Economists had been forecasting a gain of 110,000 jobs for June, compared to the 139,000 initially reported for May.
In a further positive sign, the unemployment rate edged down to 4.1% from 4.2% the prior month, defying expectations for a slight increase to 4.3%.
While the data reflects resilience in the labor market, it could also cool hopes for an imminent interest rate cut from the Federal Reserve. That may temper enthusiasm among traders, especially with a shortened trading session ahead of the July 4th holiday and U.S. markets closing early later today.
Stocks broadly advanced on Wednesday, rebounding from the prior day’s losses. Both the Nasdaq and S&P 500 notched fresh record highs, erasing Tuesday’s declines.
The Nasdaq surged 190.24 points, or 0.9%, to finish at 20,393.13. The S&P 500 gained 29.41 points, or 0.5%, to settle at 6,227.42. The Dow Jones Industrial Average, however, dipped 10.52 points, or less than 0.1%, closing at 44,484.42.
Part of the upward momentum came after former President Donald Trump revealed a new trade deal with Vietnam. Posting on Truth Social, Trump outlined the agreement’s terms, saying Vietnam would impose “a 20 percent tariff on goods sent to the U.S. and a 40 percent tariff on any transshipping.”
“In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade,” Trump said.
He added, “In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that, we will be able to sell our product into Vietnam at ZERO Tariff.”
The trade announcement helped lift market optimism, overshadowing disappointing private-sector employment data from payroll processor ADP. The firm reported a surprise drop in private payrolls, with a decline of 33,000 jobs in June. That followed a downwardly revised gain of 29,000 in May.
Analysts had been expecting a June increase of around 95,000 jobs, after the 37,000 jobs originally reported in May.
Despite that setback, strength was visible across several sectors. Steel stocks led the charge, with the NYSE Arca Steel Index jumping 4.3% to hit a seven-month high. Computer hardware names also outperformed, with the NYSE Arca Computer Hardware Index climbing 2.5%.
Other strong performers included energy, semiconductor, and airline stocks, while utilities and healthcare sectors lagged behind the broader rally.