U.S.-Vietnam trade deal overshadows U.S. jobs shrinking

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?

Hong Kong’s IPO market is on fire — here’s what’s 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.

— Anniek Bao