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U.S. and Vietnam reach trade deal

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Centene ( CNC ) tumbles after pulling 2025 forecast

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Tesla climbs, bouncing from decline early in week

(Updates to U.S. market close)

By Sabrina Valle

NEW YORK, July 2 (Reuters) - The S&P 500 and Nasdaq

closed up on Wednesday, lifted by gains in tech stocks and news

of a trade agreement between the U.S. and Vietnam that helped

ease concerns about an extended trade war.

Nasdaq rose, boosted by Nvidia ( NVDA ), Apple ( AAPL ) and

Tesla.

Investors will look ahead to the non-farm payrolls

report on Thursday for clues on how soon the Federal Reserve

could lower borrowing costs.

Trump's massive tax-and-spending bill headed to the U.S.

House of Representatives for possible final approval after the

Senate passed the legislation. Nonpartisan analysts say it will

add $3.4 trillion to the national debt over the next decade.

Markets opened lower after data showed U.S. private payrolls

fell unexpectedly in June and job gains in the prior month were

smaller than initially thought.

A weakening economy "is a very mixed bag", said Jim

Awad, senior managing director at Clearstead Advisors LLC in New

York.

"Employment softening and inducing the Fed to lower

rates would be a positive. But if it softens too much, that

would be a negative for growth and profits."

Investors have been watching whether President Donald

Trump's administration continues to make progress on trade, said

Michael Arone, chief investment strategist at State Street

Global Advisors in Boston.

"There is some relief in regards to progress on trade. The

deal with Vietnam was welcomed news," Arone said.

According to preliminary data, the S&P 500

gained 29.28 points, or 0.47%, to end at 6,227.29 points,

while the Nasdaq Composite gained 190.24 points, or

0.94%, to 20,393.13. The Dow Jones Industrial Average

fell 8.70 points, or 0.02%, to 44,486.24.

The U.S. and Vietnam struck a trade agreement that sets 20%

tariffs on many of the Southeast Asian country's exports.

The Trump administration has teased that a deal with India

is also coming soon, but has said others may not be ready by

July 9.

Tesla rose, bouncing after a drop early this week, even as

the electric vehicle maker posted a big drop in second-quarter

deliveries. Some traders said the numbers were less severe than

analysts' bleak forecasts. The stock has shed more than 20% this

year.

Centene ( CNC ) tumbled after the health insurer said it had

withdrawn its 2025 earnings forecast after data showed a

significant drop in expected revenue from its marketplace health

insurance plans.

The focus is on the more comprehensive non-farm payrolls

report on Thursday, a day earlier than usual, with markets

closed on July 4 for Independence Day. The reading is expected

to show U.S. job growth cooled in June and the unemployment rate

ticked up to 4.3%, according to a Reuters poll of economists.

"Investors are likely expecting this will push the Fed

towards cutting rates sooner rather than later," Arone said.