Trader Leon Montana is seen at work on the floor of the New York Stock Exchange on Tuesday, June 3, 2025. (Photo: Richard Drew/AP)
Wall Street ended on a high note Wednesday, with two major players—Tesla and Nike—fueling the momentum. The S&P 500 reached a new record, gaining 0.5%, its third all-time high in just four days. While the Dow Jones Industrial Average dipped slightly by 10 points, the Nasdaq composite leapt 0.9%, thanks largely to tech and consumer-driven stock gains.
Tesla Surges Despite Yearly Sales Dip
Tesla’s stock jumped 5% after the company revealed it delivered nearly 374,000 Model 3 and Model Y vehicles in the last quarter—beating Wall Street’s predictions. Although overall sales dropped 13% from the same time last year, the delivery numbers reassured investors. Concerns remain, however, about CEO Elon Musk’s political presence potentially impacting consumer trust.
Nike Rides Vietnam Deal to Higher Ground
Nike also saw a major upswing, climbing 4.1% after President Donald Trump announced a trade deal with Vietnam. Under the new terms, American products will enter Vietnam tariff-free, while Vietnamese exports to the U.S. will carry a 20% tariff. With half of Nike's shoes made in Vietnam last year, the agreement gave the company a significant boost.
Constellation Brands Gains Despite Weak Quarter
Alcohol giant Constellation Brands, known for its Modelo beer and Robert Mondavi wine, gained 4.5%. This came even after a disappointing earnings report that missed expectations. The company remains optimistic about the year ahead, despite slowing demand from industries like construction, which typically drive higher alcohol sales.
Centene Crashes on Profit Forecast Withdrawal
Not all companies had good news. Health care firm Centene faced a brutal trading day, with its stock plummeting over 40%—its worst single-day performance since going public in 2001. The sharp decline followed the company’s decision to withdraw its profit outlook due to higher-than-expected illness rates in multiple states.
Jobs Data Stir Market Unease
Investors are anxiously awaiting Thursday’s jobs report, which could offer key insights into the health of the labour market. A private report from ADP on Wednesday raised alarms after showing that non-government employers cut 33,000 jobs last month—far below economists’ forecasts of 115,000 new positions. Though job cuts are still rare, companies appear increasingly hesitant to hire or replace staff.
Nela Richardson, chief economist at ADP, explained that while layoffs remain low, the slowdown stems from companies choosing not to fill roles when workers leave.
Fed Faces Pressure Over Interest Rates
Uncertainty around Trump’s upcoming tariffs and potential job market weakness has led to speculation that the Federal Reserve might cut interest rates to keep the economy stable. However, the Fed has remained cautious, preferring to wait and see how the trade policies unfold. Trump, on the other hand, continues to push for immediate rate cuts.
Mixed Global Reactions as Tariff Deadline Nears
International markets were mixed. France’s CAC 40 added 1%, and Hong Kong’s Hang Seng climbed 0.6%. However, Japan’s Nikkei 225 dropped 0.6%, while South Korea’s Kospi fell 0.5%, reflecting ongoing uncertainty as the tariff deadline draws closer.
