Mid-session trading sees US stocks swing as private payrolls disappoint; Vietnam trade deal triggers volatility in consumer names

US stocks traded mixed on Wednesday, with the S&P 500 briefly touching a record intraday high before paring gains, as a surprise decline in private payrolls raised fresh growth concerns while a new trade deal with Vietnam sent consumer-exposed stocks on a roller-coaster ride.

By midday, the S&P 500 was off its highs but still hovering near 6,200 after earlier breaching the 6,215.80 mark — its highest intraday level ever. The Nasdaq Composite rose slightly, while the Dow Jones Industrial Average shed around 90 points as rate cut hopes clashed with soft labour data and renewed tariff complexity.

ADP shocker shifts Fed calculus
Private payrolls in the US unexpectedly declined by 33,000 in June, according to data from ADP. The figure marks the first monthly contraction in over two years and sharply undershoots economists’ expectations of a 100,000 job gain. May’s data was also revised downward to just 29,000.

Though the ADP report doesn’t always mirror the government’s official employment data — due Thursday — it has raised investor anxiety over the true state of the labour market, which has otherwise remained resilient in recent months.

Rate-cut expectations for the Fed’s July meeting inched higher to 23 percent from 20 percent a day earlier, according to CME’s FedWatch tool.

S&P 500 hits record as market cheers Vietnam trade news — then reverses
Adding to market drama, President Donald Trump announced that the US had struck a trade agreement with Vietnam, sparking a broad-based rally in stocks with exposure to the country’s manufacturing ecosystem. However, initial enthusiasm gave way to sharp reversals once deal details emerged.

Under the new terms, Vietnam will be subject to a 20 percent levy on direct exports to the US, and a 40 percent tariff on re-exported goods originally manufactured in third countries. The latter clause in particular rattled investors, given the scale of multinational supply chains flowing through Vietnam.

Shares of Nike surged over 2 percent in early trade before trimming gains. The athletic apparel major sources about 44 percent of its products from Vietnam. Peer names including Lululemon (40 percent exposure), Skechers (40 percent), Columbia Sportswear (48 percent), and On Holding (88 percent) saw similar intraday volatility. Deckers Outdoor, Crocs, and VF Corp were also active on the news.

Analysts said the deal introduces near-term relief on headline tariffs but injects fresh uncertainty into global sourcing cost models. “This isn’t a clean win,” one strategist noted. “Companies now have to re-run logistics and margin assumptions.”

Banks, Tesla, and Centene in focus
Among sector movers, Tesla jumped 5 percent after delivering 384,000 vehicles in Q2 — down 14 percent year-on-year, but better than some bearish projections. This marks the EV major’s second consecutive quarter of volume decline but shows resilience amid intensifying price and regulatory pressures.

Major US banks, including JPMorgan Chase, Goldman Sachs and Bank of America, edged higher after announcing dividend hikes and fresh buybacks following successful Fed stress test results. JPMorgan’s $50 billion repurchase plan caught market attention.

In contrast, Centene Corporation plunged nearly 30 percent after withdrawing its 2025 guidance, citing lower-than-expected enrolments across health insurance marketplaces in several states. The warning dragged down other managed care stocks in sympathy.

With the Vietnam tariff framework still subject to change and Thursday’s US jobs report likely to be pivotal for Fed expectations, market direction remains fluid. While the S&P’s golden cross and intraday breakout signal technical strength, underlying macro fragility could limit near-term upside.