US Markets | Tesla, megacaps drive S&P 500, Nasdaq to higher close

US Markets News: Wall Street's main stock indexes closed higher on Tuesday (July 2), boosted by gains in Tesla and megacap growth stocks, but volumes were thin ahead of the July Fourth holiday and the closely watched release of June nonfarm payrolls on Friday.

The job openings and labor turnover survey, or JOLTS, showed job openings increased in May after posting outsized declines in the prior two months, but layoffs picked up amid slowing economic activity.

The data is the first in this week's series of U.S. job reports, particularly Friday's release of June nonfarm payrolls, which will be crucial in assessing whether the U.S. labor market remains resilient against the backdrop of decades-high interest rates.

Tesla surged to its highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter.

Megacap stocks such as Apple, Amazon.com and Alphabet also climbed, with U.S. Treasury yields slipping across the board.

U.S. Federal Reserve Chairman Jerome Powell told a panel that recent economic data represented "significant progress," though he noted that the Fed needed to see more before changing policy.

The S&P 500 gained 33.92 points, or 0.62%, to end at 5,509.01 points, while the Nasdaq Composite gained 149.46 points, or 0.84%, to 18,028.76. The Dow Jones Industrial Average rose 162.33 points, or 0.41%, to 39,331.85.

Trading volumes are expected to be light throughout the week, with the equity market closing early on Wednesday and shut all day Thursday for U.S. Independence Day.