US OPEN: Strong Labour Market Fuels Optimism (03.07.2025)

Wall Street records another session of gains following the NFP report that exceeded most economists’ expectations. The unexpected rise in jobs created and unemployment falling to 4.1% renewed investors’ confidence in the U.S. economy. Nasdaq and DJIA are up around 0.9%, S&P 500 rallies for the 10th consecutive session (+0.7%), Russell 2000 adds 0.65%.

On the other hand, the bond market is selling off as investors reduce their expectations for a rate cut and move away from bets on a July rate cut. Consequently, yields are rising from their recent lows, caused by dovish comments from several Fed officials, Jerome Powell’s statement that a rate cut “is not off the table,” and yesterday’s surprisingly weak ADP report.

US500 (D1)

S&P 500 futures have rallied for a 10th straight session, gaining a total of 6.3% throughout its winning streak. The momentum remains strong, even though the RSI is well above the overbought level. Optimism is broad-based, with every sector in the index currently trading higher. However, the streak of new all-time highs could be at risk if the price falls back below the 6245 level — a point where the index paused earlier this week before continuing its upward move.

Source: xStation5

Company news:

• ASML, BE Semiconductor, and ASM International are down between 0.6 and 1.6% after reports that Samsung is delaying its Texas chip plant. The delay, tied to customer demand issues, weighs on European suppliers—ASML gets 14% of revenue from Samsung, BE Semi 4.4%, and ASM is also a key partner. Investors fear softer near-term demand from the Korean tech giant.

• Datadog jumps 13% postmarket after being selected to join the S&P 500, replacing Juniper Networks following its acquisition by HPE. The move boosts investor visibility and fund flows. Meanwhile, Robinhood and AppLovin, previously seen as contenders, each fell over 2% on the news.

• Synopsys and Cadence add 4.5% and 5.1% after the U.S. lifted export curbs on chip design software to China. The move reopens a key market, with Chinese clients making up 14% of Synopsys and 11% of Cadence sales. Ansys also rose 2.3%. Analysts see limited financial damage but caution on future trade uncertainty.

• Xponential Fitness surged up to 23% after the SEC ended its probe with no action. Jefferies sees improved investor sentiment under new leadership and backs the stock with a Buy rating and $26 target. Analysts cite strong brand portfolio, international growth potential, and a franchisee-focused strategy as key drivers for future performance.