US Equity Futures Hold Steady Awaiting Key Jobs Report

US equity futures are holding steady on Wednesday, July 2, 2025, as investors brace for the release of June’s payrolls report on thursday. Market participants are also closely monitoring the progression of trade negotiations, particularly in light of the Trump administration’s July 9 tariff deadline.

Market Overview

Contracts for the S&P 500 experienced a slight increase of 0.1% after the US benchmark took a pause from its record-breaking surge in the previous session. Small-cap stocks, represented by the Russell 2000 futures, outperformed with a rise of 0.9%, continuing Tuesday’s trend of rotation out of high-momentum stocks. European stocks also saw gains, advancing by 0.4%.

Did You Know? The S&P 500 index represents the performance of 500 of the largest publicly traded companies in the United States, offering a broad snapshot of the US equity market.

Trade Talk Developments

While the United States engages in discussions with key trading partners, the Trump administration has intensified pressure on Japan and reiterated its commitment to the tariff deadline, which is now just a week away. Although trade headlines caused notable market fluctuations in april, equity indexes are currently showing less sensitivity, hovering near record highs.

Recent economic data has indicated the resilience of the US economy despite the Trump administration’s tariff policies. The upcoming monthly payrolls report is expected to provide investors with further insights into the labor market and potential future interest rate adjustments.

Pro Tip: Monitoring economic indicators like the monthly payrolls report can provide valuable insights into the overall health of the economy and potential market trends.

Analyst Perspective

Karen Georges, an equity fund manager at ecofi in Paris, dismissed Trump’s warning to Japan as a “non-event.” She identified jobless claims and the tariff negotiation deadline as the primary catalysts for market movements in the near future.

Banking sector Performance

Shares of major US banks, including JPMorgan Chase & Co., Goldman Sachs Group Inc., and Bank of America Corp., saw gains in premarket trading following announcements of increased dividends.These banks recently passed the Federal Reserve’s stress test,which included some relaxation of requirements established in previous years.

treasury Yields and Interest Rate Expectations

US Treasuries experienced a decline across the curve as investors reduced their expectations for the magnitude of interest rate cuts for the remainder of the year. The 10-year Treasury yield increased by four basis points to 4.28%.

Swaps are now indicating approximately 63 basis points of Federal Reserve policy easing by the end of the year, a decrease from the 67 basis points projected on Tuesday. This adjustment followed data revealing that US job openings had reached their highest level since November. According to the Bureau of Labor Statistics, there were 11.4 million job openings in April 2025, indicating a strong demand for labor [[1]].

Corporate Highlights

• Foxconn Technology Group has instructed hundreds of Chinese engineers and technicians to return from its iPhone factories in India, impacting Apple Inc.’s manufacturing efforts in the region.
• Banco santander SA has agreed to acquire Banco Sabadell SA’s UK unit for £2.65 billion ($3.64 billion),which will position it as the UK’s third-largest lender by certain metrics.
• Centene Corp. shares plummeted by over 20% in premarket trading after the health insurer withdrew its 2025 guidance, citing deviations from its initial assumptions.
• Stellantis NV’s US deliveries decreased by 10% in the second quarter, even though sales of its key Jeep and Ram brands showed improvement.
• KKR & Co. has reached an agreement to acquire Spectris Plc for approximately £4.1 billion ($5.6 billion), surpassing a previous bid from a consortium led by Advent.
• Worldline SA has engaged an external firm to review its portfolio of high-risk clients in an effort to restore confidence following allegations of overlooking fraudulent activities.
• SoftBank Group corp.’s $6.5 billion acquisition of semiconductor designer Ampere Computing LLC is facing a potential extended investigation by the US government.
• Domino’s Pizza Enterprises Ltd.shares experienced a significant drop of up to 26% in Sydney after the company’s chief executive officer announced his resignation