Major stock indices in the US rose after the trade agreement with Vietnam

The broader S&P index rose 0.5 percent to 6,227.42, its third all-time high in four sessions.

The S&P 500 and Nasdaq stock indexes ended at new records on July 2 after President Donald Trump announced a trade agreement with Vietnam, AFP reports.

The session got off to a dismal start after payroll firm ADP reported that the US private sector lost 33,000 jobs in June. That heightened concerns ahead of the critical government jobs data on July 3.

However, markets reacted well to Trump's announcement that he had reached a deal with Vietnam.

The broader S&P index rose 0.5 percent to 6,227.42, its third all-time high in four sessions.

The Nasdaq Composite technology index rose 0.9 percent to 20,393.13, also a record, while the Dow Jones Industrial Average was unchanged at 44,484.42.

The strong stock performance came despite rising U.S. Treasury yields. That suggests unease in the bond market as Congress considers Trump's massive tax and spending package, which is projected to increase U.S. debt.

"This has driven a wedge between equities and bonds," says Jack Ablin of Cresset Capital Management. "Equity markets are welcoming the tax cut and bond markets are concerned about the long-term implications."

Among individual companies, Tesla rose 4.7 percent as the company reported a 13.5 percent decline in vehicle sales in the second quarter. | BGNES

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