Stock Market Today: Major Indexes Rise Following Trump-Xi Call as Investors Eye Key Earnings

Market Overview: Positive Momentum on Trade Optimism

U.S. stock markets are trading higher Thursday afternoon, June 5, 2025, as investors react positively to news of a phone conversation between President Donald Trump and Chinese President Xi Jinping. The call has sparked optimism about potential easing of trade tensions between the world’s two largest economies.

As of midday, the Dow Jones Industrial Average is up 0.3% at 42,396.12, rebounding after snapping a four-day winning streak yesterday. The S&P 500 has gained 0.4% to 5,955.35, while the tech-heavy Nasdaq Composite is showing stronger performance with a 0.7% increase to 19,383.45.

“The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries,” Trump wrote on social media this morning. “Our respective teams will be meeting shortly at a location to be determined.” This development has helped ease concerns about escalating trade tensions that have weighed on markets in recent weeks.

Economic Data Raises Concerns About Labor Market

Despite today’s market gains, investors remain cautious following yesterday’s disappointing May private sector payrolls report, which showed an increase of just 37,000 jobs—well below the forecast of 110,000. This significant miss has fueled concerns about a softening job market and its potential impact on the broader economy.

Market participants are closely monitoring today’s Weekly Jobless Claims data along with April’s U.S. Trade Deficit and U.S. Q1 Productivity reports for further insights into economic conditions. The focus will shift to Friday’s comprehensive May jobs report, which economists believe will provide crucial information about how the labor market is responding to trade policy uncertainty.

Major Stock Movers and Corporate News

Several notable stocks are making significant moves today:

– Tesla (TSLA) has dropped 8.81% to $302.81, continuing its volatility amid trade concerns despite recent optimism about its upcoming robotaxi reveal.

– Microsoft (MSFT) is up 0.75% to $467.33, showing resilience as analysts note it’s “arguably the company least impacted by tariffs in the Magnificent Seven” due to minimal exposure to “retail, advertising spending, cyclical hardware, or physical supply chains.”

– Nvidia (NVDA) is slightly down 0.44% at $141.29 after leading gains for chip stocks earlier this week.

– Apple (AAPL) is down 0.39% to $202.03, continuing to face challenges as one of the “Magnificent Seven” companies most exposed to trade tensions.

– Amazon (AMZN) is showing strength with a 1.01% gain to $209.32.

– MongoDB (MDB) has surged 12.96% to $225.61 after reporting better-than-expected first-quarter results.

– Newegg Commerce (NEGG) is the day’s biggest gainer, up an impressive 64.81% to $10.35.

Upcoming Earnings Reports to Watch

After the market closes today, several major companies will report their quarterly earnings, including:

– Broadcom (AVGO), expected to report quarterly earnings of $1.57 per share on revenue of $14.97 billion

– Lululemon Athletica (LULU), with analysts projecting earnings of $2.59 per share on revenue of $2.37 billion

– DocuSign (DOCU), estimated to report quarterly earnings of $0.81 per share on revenue of $748.92 million

– Vail Resorts (MTN), with expectations of $10.06 per share on revenue of $1.30 billion

These reports could provide valuable insights into consumer demand and how different sectors are navigating global supply challenges.

Commodities and Treasury Yields

In other markets, the U.S. 10-year Treasury yield is trending higher, hovering near 4.367%. WTI crude oil futures are also moving upward, trading around $62.87 per barrel.

Gold prices have seen a slight decline today, with the spot price falling to $3,370 per ounce after strong gains in the previous session. The modest pullback comes as investors assess the implications of weak U.S. labor data and ongoing uncertainty surrounding trade policy.

Global Market Outlook

Internationally, Asian markets showed mixed performance today. Hong Kong’s index rose 0.95%, while China’s Shanghai Composite and Shenzhen Component indices closed higher by 0.23% and 0.58%, respectively. In contrast, Japan’s Nikkei and Topix indices declined by 0.51% and 1.03%.

European markets are trading higher as investors await the European Central Bank’s policy decision, with a 25-basis point rate cut widely expected.

Looking Ahead: Key Factors to Watch

As we move forward, market participants will be closely monitoring several key developments:

1. Friday’s comprehensive May jobs report, which will provide crucial insights into labor market conditions
2. Further developments in U.S.-China trade relations following the Trump-Xi call
3. The European Central Bank’s interest rate decision
4. Reactions to today’s major earnings reports, particularly from tech and retail sectors

With the S&P 500 and Nasdaq having recorded their biggest monthly gains since November 2023 in May, investors remain cautiously optimistic while staying alert to potential headwinds from trade tensions and labor market concerns.