Stock Market: Dow Stagnant, Technology Sector Gaining Strength
In the coming week, investors and economists alike are eagerly awaiting the release of the U.S. jobs report scheduled for Thursday, July 3 at 8:30 a.m. EDT. The report, which is expected to show signs of weakening labor market growth, could have significant implications for the U.S. stock market.
Forecasts suggest that nonfarm payroll employment growth will slow to 115,000 jobs added, down from 139,000 in May. The unemployment rate is forecasted to rise slightly to 4.3% from 4.2%, and hourly earnings growth is expected to moderate to 0.3% from 0.4% in May.
Economists are also watching for the impact of policy changes, such as the removal of Temporary Protected Status (TPS) for several hundred thousand people, which could have reduced payrolls by several thousand jobs in June. This policy could thus introduce some downward pressure on overall employment figures, though the precise impact remains uncertain.
The potential slowing of job market growth could increase market volatility. Investors may interpret a slowing job market as a signal for slower economic growth or a potential cooling in consumer spending. This might temper risk appetite, especially ahead of the official report release.
Meanwhile, in the U.S. stock market, banks remain in focus among Dow components. JPMorgan, for instance, is one of the banks that remains in focus. There is a potential for a continuation of the banks' record rally in U.S. stock markets.
However, U.S. protectionism remains the order of the day, according to ING Bank. The approaching end of Donald Trump's transition period in the trade dispute is being monitored by investors, but without specific current information, it is unclear how ongoing trade talks are progressing or whether they might influence market sentiment alongside the jobs data.
In summary, the upcoming jobs report will be crucial for gauging the health of the U.S. labor market and influencing near-term stock market dynamics. Stocks like Sunrun are also making headlines, adding another layer of interest to the market's midweek performance. The report's release will provide valuable insights into the state of the U.S. economy and the direction of the stock market in the coming weeks.
[1] "U.S. Jobs Report: What to Expect and Its Impact on the Stock Market." Forbes, 2 July 2025, www.forbes.com/sites/investor/2025/07/02/us-jobs-report-what-to-expect-and-its-impact-on-the-stock-market/?sh=3e91859a571d [2] "U.S. Jobs Report Preview: What to Expect and Its Potential Impact on the Market." CNBC, 1 July 2025, www.cnbc.com/2025/07/01/us-jobs-report-preview-what-to-expect-and-its-potential-impact-on-the-market.html
- "The upcoming U.S. jobs report could have significant implications for other sectors of the economy, particularly the finance industry, as it may influence interest rates and overall economic growth expectations."
- "Investors might shift their focus from stocks like Sunrun to safer assets in the finance sector, such as government bonds or money market funds, if the jobs report indicates a weaker labor market and increased market volatility."
