Today’s Complete Market CoverageMajor Indexes Post Modest Gains at Wednesday’s Opening Bell
U.S. stocks inched higher on Wednesday, June 4, 2025, as investors digested a surprisingly weak ADP employment report while keeping a watchful eye on renewed U.S.-China trade tensions. At the market open, the major indexes continued their upward momentum from earlier in the week.
The S&P 500 (^GSPC) rose 0.16% to 5,980.07, while the Dow Jones Industrial Average (^DJI) added 0.10% to 42,564.18. The tech-heavy Nasdaq Composite (^IXIC) gained 0.13% to 19,423.52.
ADP Jobs Report Shows Significant Slowdown in Hiring
The ADP National Employment Report released this morning showed private sector employment increased by just 37,000 jobs in May, marking the slowest pace of hiring since March 2023. This represents a significant drop from April’s revised figure of 60,000 jobs.
“After a strong start to the year, hiring is losing momentum,” said Dr. Nela Richardson, chief economist at ADP. “Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers.”
The weak jobs data has some analysts speculating that the Federal Reserve might consider accelerating its rate-cutting timeline, which could provide additional support for equities in the coming months.
CrowdStrike Shares Plunge on Disappointing Outlook
CrowdStrike Holdings (CRWD) shares tumbled more than 6% at the opening bell after the cybersecurity firm delivered a current-quarter revenue outlook that fell short of analysts’ expectations. While the company reported first-quarter adjusted earnings per share of $0.73, above consensus estimates, on revenue that increased 20% year-over-year to $1.1 billion, its Q2 revenue projection of $1.14 billion to $1.15 billion disappointed investors.
CFO Burt Podbere attempted to reassure investors by highlighting expectations for “ARR reacceleration and margin expansion in the second half of fiscal year 2026” as the company’s new flexible “Falcon Flex” licensing program gains popularity. The company also announced a new $1 billion share repurchase program, signaling confidence in its long-term prospects.
Dollar Tree Warns of Tariff Impact as HPE Surges
Dollar Tree (DLTR) shares fell nearly 10% after the discount retailer warned that tariffs could significantly impact its current-quarter profit. The company forecasted that Q2 adjusted earnings per share could be down 45% to 50% as it works to mitigate and absorb the cost of tariffs. This overshadowed otherwise strong first-quarter results, where adjusted EPS, net sales, and comparable store sales all topped analysts’ estimates.
In contrast, Hewlett Packard Enterprise (HPE) shares surged after the company reported better-than-expected fiscal second-quarter results. The server maker reported adjusted EPS of $0.38 on revenue that rose 6% to $7.63 billion, both above consensus estimates. The company’s current-quarter revenue forecast also topped projections.
Trade Tensions Simmer as Trump Comments on China Negotiations
Market gains were somewhat tempered by President Donald Trump’s comments regarding difficulties in trade negotiations with China. Early Wednesday, Trump stated that dealing with Chinese President Xi Jinping has been “extremely hard,” raising concerns about the ongoing trade discussions between the world’s two largest economies.
Despite these remarks, investors appear increasingly confident that stocks have turned a corner on tariff concerns. A series of reversals from the Trump administration has convinced many traders that the White House is mainly wielding high levies as a negotiating tool rather than implementing permanent trade barriers.
Looking Ahead: Key Events to Watch
Investors are now looking ahead to Friday’s comprehensive jobs report from the Bureau of Labor Statistics, which will provide a more complete picture of the labor market. The weak ADP numbers have set expectations for a potentially softer government report.
Other notable stocks making moves at the opening bell include Applied Digital Corporation (APLD), which surged over 18%, and Guidewire Software (GWRE), which jumped more than 17% after reporting strong quarterly results.
Meanwhile, Nvidia (NVDA) continues to attract attention after briefly surpassing Microsoft to become the world’s most valuable public company on Tuesday. The chip giant’s shares were relatively flat at the open, down 0.28% to $140.83.
As trading continues, market participants will be closely monitoring any further developments in U.S.-China trade relations and additional corporate earnings reports for clues about the overall health of the economy.