S&P 500 Sets Fresh Record Despite Soft Jobs Data as Rotation and Mega-Caps Drive Gains

The S&P 500 closed at a new all-time high on Wednesday, rising steadily throughout the session despite a weaker-than-expected ADP Employment Report, which showed a decline of 33,000 private-sector jobs in June. While the labor data initially raised concerns, market sentiment quickly pivoted as investors focused on positive catalysts elsewhere—most notably, a newly announced trade agreement between the U.S. and Vietnam, strong earnings-related momentum from key mega-cap names, and continued leadership in small- and mid-cap stocks.

The trade deal with Vietnam, which grants zero-tariff access for U.S. exports, added fuel to the market’s early optimism. But the real driver came from standout performances in the mega-cap tech space. Tesla surged nearly 5% after posting better-than-expected Q2 delivery numbers. Apple gained 2.2% following a Jefferies upgrade, while NVIDIA and Alphabet rose 2.6% and 1.6%, respectively, as enthusiasm around AI continued to boost the group.

These gains helped lift the S&P 500 by 0.5%, but once again it was the broader market that stole the spotlight. The Russell 2000 advanced 1.3%, while the S&P Midcap 400 added 1.0%, both benefiting from sustained rotation into value, small-cap, and cyclical names.

Market breadth confirmed the bullish tone, with advancers outpacing decliners by better than 2-to-1 on both the NYSE and Nasdaq. The rally was broad—but not without exceptions.

One major outlier was Centene (CNC), which plummeted over 40% after the health insurer withdrew its 2025 guidance. The company cited early analysis from Wakely indicating a significant negative earnings impact due to expected changes in the Health Insurance Marketplace. The news dragged down peers across the health insurance space, making health care (-1.0%) the day’s worst-performing sector.

Financials (-0.1%) also underperformed despite several major banks announcing dividend increases and share buybacks, following the successful completion of the Federal Reserve’s annual stress test.

At the top of the leaderboard were energy (+1.7%), materials (+1.3%), and information technology (+1.3%), with the latter riding on the strength of Apple, NVIDIA, and the broader AI trend.

While the disappointing ADP employment data didn’t rattle investors, it did set the stage for heightened anticipation ahead of Thursday morning’s release of the official June Employment Situation Report. Market participants remained cautious, knowing that ADP figures often diverge from government labor data.

Meanwhile, in Washington, the “One Big, Beautiful Bill” remains stalled in the House. Reports suggest rising GOP resistance over its projected costs, delaying the process and dimming hopes for it to be signed by July 4. Still, expectations remain high that the bill will eventually clear both chambers.

Our U.S. portfolio, FTinvest 11, delivered a strong performance today, breaking above the 790 mark shortly after the opening bell. The index maintained its momentum throughout the session and closed near its daily highs at 795.4, up 1.17% for the day.

Despite the solid advance, FTInvest 11 finished just 0.21% below its previous all-time high. With broad market sentiment remaining constructive and momentum building, the portfolio is well-positioned to challenge new highs in the sessions ahead.