CNBC Daily Open: U.S. markets say ‘yes' to cheaper shoes from Vietnam, ’eh' to job losses

• Vietnam strikes trade deal with America.
• The S&P 500 rises to close at a fresh record.
• The White House lifts chip software curbs on China.
• The U.S. lost private sector jobs in June.
• A weak jobs report could trigger a sell-off.

If I had to choose between having a job and paying less for Nike shoes, you'd see me running barefoot to the office. Wednesday's market moves, however, suggested that Wall Street preferred the cheaper shoes.

The U.S. economy lost private sector jobs in June, the first time hiring had contracted since March 2023, according to payrolls processing firm ADP. It's even more startling because a Dow Jones survey of economists had pegged job numbers to expand by 100,000.

Meanwhile, U.S. President Donald Trump announced on his social media site Truth Social that the country had made a trade deal with Vietnam, in which the Southeast Asian nation will face a 20% duty on imports to America. That means companies that rely heavily on Vietnam for manufacturing, such as Nike, Crocs and Lululemon, will face less onerous costs and might not hike prices as much, compared with the original tariff rate of 46%.

After weighing both pieces of news, investors decided the good news was more important and lifted the S&P 500 to a new closing high. Granted, the ADP report has had a spotty track record in predicting the official job figures from the U.S. Bureau of Labor Statistics. But it's still worth thinking about how that's a sign financial markets could be slightly disconnected from the real economy: Who can afford to buy shoes and pump up stocks if they don't have jobs?

What you need to know today

Vietnam strikes a deal with America. Imports from the Southeast Asian nation to the U.S. will be subject to a 20% tariff, while the U.S. gets tariff-free access to Vietnam's market, Trump announced Wednesday.

The S&P 500 rises to close at a fresh record. On Tuesday, the index also scored an intra-day high, while the Nasdaq Composite notched a record close.The Vietnam Index on Wednesday rose to its highest level since April 2022, following news of the country's deal with America.

The White House lifts chip software curbs on China. Semiconductor software companies Synopsys and Cadence announced Thursday that they are restoring access to their products after the U.S. government reversed export restrictions.

U.S. private sector jobs shrank in June. Job losses amounted to 33,000, reported ADP on Wednesday. Economists polled by Dow Jones had expected an increase of 100,000 jobs for the month.

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And finally...

Hong Kong‘s IPO market is on fire — here’s whats fueling the surge

New listing volumes on the Hong Kong Stock Exchange jumped around eight times to $14 billion in the first half of this year, from just $1.8 billion in the same period in 2024, according to Dealogic.

That puts the city on track to become the world's largest listing destination this year, surpassing the Nasdaq and the New York Stock Exchange. PwC projected up to 100 IPOs in Hong Kong this year, with total fundraising to exceed $25.5 billion.