BTC 109K! U.S. stocks hit new highs amid employment concerns: S&P 500 rises, ADP report unexpectedly releases economic warning.

On Wednesday (Eastern Time), the US stock market once again reached a historic high, but the market's optimistic sentiment was pulled back to reality by an unexpected employment data. On one hand, US President Trump announced a trade agreement with Vietnam, boosting the S&P 500 and Nasdaq indices; on the other hand, the employment data released by ADP showed a decline in private sector employment, raising market expectations for an economic slowdown and possible interest rate cuts by The Federal Reserve (FED).

Trade positives support: S&P 500 hits new highs again

U.S. President Trump announced on Wednesday via Truth Social that a new trade agreement has been reached between the U.S. and Vietnam, which includes a 20% tariff on imported goods from Vietnam. This news boosts investor confidence, leading the S&P 500 index to rise by 0.3%, reaching a historic high during intraday trading. The tech-heavy Nasdaq increased by 0.8%, while the Dow Jones Industrial Average fell by 32 points, a decline of about 0.1%.

As soon as the news broke, companies related to the production chain in Vietnam also took action. The stock price of sports brand giant Nike surged by 3%, reflecting the market's re-evaluation of the supply chain in Vietnam. Approximately half of Nike's footwear products come from Vietnam and China.

ADP data "disappoints": Private sector cuts 33,000 jobs

However, there are significant shadows coming from the economic front. The latest report released by ADP shows that the U.S. private sector unexpectedly reduced 33,000 job vacancies in June, marking the first monthly decrease since March 2023. In contrast, the market had originally expected an increase of 100,000 jobs, creating a clear disparity.

The Federal Reserve (FED) interest rate cut expectations heat up: July meeting becomes a key observation point

The market expects that the probability of the Federal Reserve (FED) lowering interest rates in July has risen from 21% yesterday to nearly 24%. Analysts believe that if the upcoming government official employment report also falls short of expectations, the Federal Reserve (FED) may put rate cuts on the agenda.

Sam Stovall, the chief investment strategist at CFRA Research, stated: "If the employment report this Friday also shows weakness, the likelihood of the Federal Reserve (FED) cutting interest rates will significantly increase." He also pointed out that the Federal Reserve (FED) Chairman Powell had previously indicated that if Trump had not announced tariff increases at the beginning of the year, the central bank might have already cut interest rates.

The market is in a wait-and-see atmosphere: the tax reform bill has become another variable.

In addition to trade and employment data, investors are also closely watching the latest developments on tax and spending legislation. The bill narrowly passed in the Senate on Tuesday and will next return to the House for consideration, but some Republican lawmakers still have reservations, leaving the bill's ultimate fate uncertain.

On Tuesday, the market showed mixed performance, with the Dow Jones soaring 400 points, while the S&P and Nasdaq closed lower due to a general weakness in tech stocks. Funds clearly shifted towards commodities and healthcare stocks, indicating that investors are rebalancing their portfolios in response to potential economic headwinds.

Cryptocurrency Synchronization Observation: Bitcoin and Major Coins Show Uptrend

Although the U.S. stock market is pulled by trade and economic data, the cryptocurrency market shows relative resilience. According to the latest market conditions:

Bitcoin (BTC) is priced at $109,433.10, up 2.97% in the last 24 hours, with a monthly increase of nearly 4.91%.

The price of Ethereum (ETH) is $2,535.79, up 5.03% over the past week.

Solana (SOL) and Cardano (ADA) recorded weekly gains of 5.93% and 3.00%, respectively.

In contrast, stablecoins USDT and USDC experience very little price fluctuation, maintaining around $1.

Among them, Dogecoin (DOGE) performed well, soaring 5.55% within 24 hours, making it one of the strongest performing top ten cryptocurrencies.

U.S. stocks are being pulled along amidst positive trade news and negative employment data, with short-term volatility in the market likely to increase. The next key observation point will be the official non-farm employment data and the policy direction of The Federal Reserve (FED). The cryptocurrency market, on the other hand, is showing a stable upward trend, reflecting signs of capital seeking a safe haven. As various data continues to be released, investors should closely monitor changes in macro trends.

This article BTC 109K! US stocks reach new highs amid employment concerns: S&P 500 rises, ADP report unexpectedly releases economic warning first appeared on Chain News ABMedia.