S&P 500 hit record high on Wednesday on US-Vietnam trade deal

The S&P 500 closed at a record high on Wednesday, fueled by strong gains in tech stocks and a positive boost from a new US-Vietnam deal. The agreement eased investor concerns over further escalation in the prolonged trade tensions, Reuters reports.

Now, market participants are awaiting Thursday’s US nonfarm payrolls report, the news agency notes. The data will provide clues on how soon the Federal Reserve may start cutting interest rates.

According to Jim Awad of Clearstead Advisors, a moderate cooling in the US labor market could push the Federal Reserve to ease monetary policy, which is a positive signal for the S&P 500. However, if job market data weakens too sharply, it could weigh on the index’s growth and corporate earnings.

In addition to the deal with Vietnam, the Trump administration has also signaled that an agreement with India could be reached soon. However, negotiations with other countries may take longer. As Michael Arone of State Street Global Advisors noted, the progress made so far has had a positive impact on the stock market.