Today’s Complete Market CoverageMajor Indexes Close Mixed Amid Renewed China-U.S. Trade Concerns
U.S. stock markets closed mixed on Monday, June 2, 2025, as investors grappled with renewed trade tensions between the United States and China. The S&P 500 edged down 0.53% to close at 5,911.69, while the Dow Jones Industrial Average managed a slight gain of 0.1%, adding 54.34 points to finish at 42,270.07. The tech-heavy Nasdaq Composite declined 0.68%, settling at 19,113.77.
The market’s cautious performance came after China pushed back against U.S. accusations that it had violated the Geneva trade agreement, instead blaming Washington for failing to uphold the deal. This development signals deteriorating negotiations between the world’s two largest economies, following a brief pause after U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in Geneva and agreed to a 90-day suspension of most tariffs.
Trade Tensions Reignite After Brief Respite
Monday’s market decline reflects growing concerns about the ongoing trade dispute. President Donald Trump revived fears of an extended trade war on Friday, claiming China had reneged on their agreement. National Economic Council director Kevin Hassett suggested that President Trump and China’s President Xi Jinping could have a conversation about trade as soon as this week, potentially providing some clarity on the situation.
“Wall Street has been dominated by questions about what will happen with Trump’s tariffs, which investors worry could grind the economy into a recession, slash companies’ profits and layer even more challenges on households already sick of inflation,” noted market analysts.
The legal status of Trump’s tariffs remains in flux following two key court rulings last week. The U.S. Court of International Trade struck down many of the sweeping tariffs, but they remain in place while the White House appeals the ruling.
Manufacturing Data Disappoints as Oil Prices Surge
Adding to market concerns, Monday’s economic data showed U.S. manufacturing activity slumped in May. The Institute for Supply Management’s manufacturing index fell below expectations, raising questions about the resilience of the industrial sector amid ongoing trade uncertainties.
Meanwhile, oil prices jumped significantly, adding potential inflationary pressures to an already complex economic environment. Energy stocks were among the few bright spots in Monday’s trading session.
Key Earnings Announcements After Today’s Close
Investors are closely watching several major earnings reports scheduled for release after today’s market close. CrowdStrike Holdings Inc (CRWD) is expected to report earnings per share of $0.66 on revenue of $1.1 billion. The cybersecurity firm’s results will be closely scrutinized for insights into enterprise spending on digital security solutions.
Hewlett Packard Enterprise Co (HPE) is also reporting after the bell, with analysts projecting earnings of $0.32 per share on sales of $7.46 billion. HPE stock has historically responded favorably to earnings announcements, with positive one-day returns in 63% of instances over the past five years.
Other notable companies reporting after today’s close include Guidewire Software Inc (GWRE), Healthequity Inc (HQY), and Asana Inc (ASAN).
Looking Ahead: Employment Data in Focus
Market participants are now turning their attention to the upcoming employment data, with the May jobs report scheduled for release later this week. Economists polled by FactSet expect the report to show the U.S. economy added just 125,000 jobs last month, down from the 177,000 jobs added in April.
“It’s still a pretty tight labor market,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. “Employers have been unwilling to shed employees, even if they’re uncertain about the future, because they lived through the pandemic, and understood how hard it was to hire back and get qualified workers.”
Market Outlook: Navigating Uncertainty
Despite May’s strong market performance, with the S&P 500 gaining over 6% (its best monthly performance since November 2023), analysts remain cautious about June’s prospects. Morgan Stanley’s Chris Toomey expressed skepticism about whether May’s market momentum will continue.
“We’re probably still range-bound,” Toomey told CNBC. “The concern we’ve got is that while I think we’ve taken [out] the worst-case scenario with regards to the ‘liberation day’ [tariffs], we’re in a situation where I think the market’s right now probably pricing in the best-case scenario.”
Economists are increasingly concerned about the impact of tariffs on consumer behavior. EY-Parthenon chief economist Gregory Daco noted that durable goods spending fell in the latest April personal income and outlays data, while the personal savings rate rose.
“Tariffs had begun to take hold — but their full impact had yet to materialize,” Daco wrote. “With employment growth slowing, income gains moderating and the inflationary effects of tariffs building, households are likely to become more cautious in the months ahead.”
As markets navigate these uncertainties, investors will be closely monitoring upcoming economic data and earnings reports for signs of resilience or vulnerability in the U.S. economy at the closing bell.