WALL STREET RALLIES ON STRONG JOBS DATA AND TRADE BREAKTHROUGHS

By Tim Montague-Jones | Australian Stock Report

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US MARKETS HIT RECORD HIGHS

Wall Street extended its winning streak overnight, with the S&P 500 closing at a record high of 6,279.35, gaining 0.9% on the day. The Dow Jones added 0.8% and the Nasdaq rose 1% as investor sentiment strengthened following a robust US labour market report and a breakthrough in global trade negotiations.

June’s nonfarm payrolls surged by 147,000—comfortably beating the forecast of 111,000. This surprise upside was led by gains in state government and healthcare hiring. In addition, the US unemployment rate dipped to 4.1%, and hourly earnings grew at a slower pace of 0.2%. The data eased inflation concerns, giving equity investors renewed confidence.

However, despite signs of cooling inflation, Federal Reserve Chair Jerome Powell maintained a cautious tone on interest rate policy. While the Fed remains data-dependent, pressure is mounting from political circles—including President Trump—for more aggressive rate cuts heading into the second half of 2025.

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TRADE DEALS BOOST OPTIMISM

Market enthusiasm was further stoked by a significant US-Vietnam trade agreement, imposing new 20–40% tariffs aimed at addressing bilateral trade imbalances. Progress was also reported on separate trade deals with China, Canada and potentially India, as negotiations accelerate toward the July 9 deadline.

Meanwhile, President Trump’s US$3.3–$3.4 trillion tax-cut bill advanced through the House, signalling potential future fiscal stimulus. Investors are now weighing how this could impact inflation, interest rates and corporate earnings in the months ahead.

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CORPORATE HEADLINES: TECH AND ENERGY IN FOCUS

On the corporate front, activist hedge fund Starboard Value revealed a 9% stake in Tripadvisor, sparking speculation about upcoming strategic shifts at the online travel company. Meanwhile, Datadog soared on news it will join the S&P 500 index, and semiconductor giants such as NVIDIA led a rally in chip stocks following the easing of US export restrictions to China.

In commodities, prices were mixed. Gold slipped 0.1% to US$3,338.50 an ounce, and Brent crude eased 0.3% to US$68.88 per barrel. However, iron ore rallied 1.8% to US$95.13 a tonne, underscoring resilience in key materials despite global uncertainty.

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AUSTRALIAN MARKET STAYS FLAT

The ASX 200 edged 0.02% lower, with sector performance mixed. Gains in Financials, Information Technology, and Utilities were offset by weakness in Healthcare and Materials. Commodity markets were broadly supportive, with Aluminium, Copper and Nickel finishing higher. Zinc was the notable laggard.

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SANTOS SIGNS LNG SUPPLY DEAL WITH QATARENERGY

In a notable development in the Australian energy sector, Santos announced a mid-term LNG contract with Qatar Energy Trading. The deal will see approximately 0.5 million tonnes of liquefied natural gas supplied annually over the next two years.

Santos CEO Kevin Gallagher highlighted the company’s ability to “leverage our flexible LNG portfolio to achieve great outcomes for Santos and our customers.”

This contract enhances Santos’ global footprint and further solidifies its position in the international LNG market.

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QANTAS RESPONDS TO CYBERATTACK

Qantas is ramping up cybersecurity measures after a cyberattack earlier this week. CEO Vanessa Hudson confirmed that no sensitive customer data—such as passwords or frequent flyer details—was accessed. However, scammers have been attempting to impersonate Qantas employees in the aftermath.

“We are treating this incredibly seriously and have implemented additional security measures to further strengthen our systems,” said Hudson.

There have been no ransom demands or further threat activity, according to Qantas, and customers are urged to remain vigilant.

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AIR NEW ZEALAND REPORTS IMPROVED METRICS

Across the Tasman, Air New Zealand posted a 2% year-on-year improvement in revenue per available seat kilometre (RASK) for May. The result suggests gradual operational recovery in the face of inflationary pressures and fluctuating demand.

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LOOKING AHEAD

With a packed economic calendar and the July 9 trade deadline approaching, investor focus will likely remain on macroeconomic data, central bank signals, and geopolitical developments. Australian investors will also be watching the local reporting season as it gets underway later this month.

For ongoing market insights and expert analysis, stay tuned to the Australian Stock Report.

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