Real-Time Stock Market UpdatesMajor Indexes Post Modest Gains as Investors Await Trade Clarity
U.S. stock markets are showing modest gains in midday trading on Tuesday, June 3, 2025, as investors continue to navigate uncertainty surrounding President Donald Trump’s tariff policies and their potential impact on the economy. The S&P 500 is up 0.4% as of 11:15 a.m. Eastern time, hovering within 3% of its all-time high after recovering from a significant drop two months ago.
The Dow Jones Industrial Average has added 74 points, or 0.2%, while the tech-heavy Nasdaq Composite is showing stronger performance with a 0.7% gain.
Economic Outlook Dampened by Tariff Concerns
Market sentiment today is being tempered by the Organisation for Economic Co-operation and Development’s (OECD) decision to sharply lower its growth forecasts for the U.S. and global economies. The OECD now expects U.S. real GDP growth to fall to 1.6% in 2025 and 1.5% in 2026, down from 2.8% in 2024. This represents a significant reduction from their March forecast of 2.2% for this year.
The downward revision primarily stems from concerns about the fallout from tariffs and policy uncertainty. Global GDP growth forecasts have also been cut to 2.9% for both this year and next, down from 3.3% in 2024.
“The market is no longer enticing the type of buying demand that was apparent between mid-April and mid-May when support at the 50-hour moving average produced large thrusts higher,” noted analysts at Equity Clock, suggesting that a “digestive period heading into the end of the second quarter is likely underway.”
Dollar General Leads Gainers as Retail Shows Resilience
Dollar General (DG) is today’s standout performer, jumping 12.7% after reporting stronger-than-expected profit and revenue for the first quarter. The discount retailer also raised its forecasts for full-year profit and revenue, though it cautioned about “uncertainty” for the remainder of the year due to tariffs and their potential impact on customers.
This positive performance comes as many other companies have cut or withdrawn their financial forecasts due to the uncertainty caused by President Trump’s tariff policies.
Auto Stocks Under Pressure from Steel Tariff Proposal
Shares of major automakers remain under pressure following Monday’s decline, as investors continue to digest President Trump’s proposal to double U.S. tariffs on steel imports to 50%. General Motors (GM), Ford Motor (F), and Stellantis (STLA) all dropped approximately 4% on Monday and are edging lower in today’s midday trading.
Tech Sector Shows Strength with Notable Moves
Meta Platforms (META) is gaining attention after signing a 20-year agreement with Constellation Energy for the electric provider to supply nuclear power for Meta’s artificial intelligence data centers.
Meanwhile, Palantir Technologies (PLTR) shares hit a record high for a second straight session yesterday, continuing their strong performance in today’s trading.
Upcoming Market Events to Watch
Investors are closely monitoring several key economic reports and events scheduled for this week:
– Today’s factory orders report for April (expected at -3.2% compared to 4.3% in March) and job openings data for April will provide insights into manufacturing activity and labor market conditions.
– Wednesday will bring the ADP employment report for May, with expectations of 112,000 jobs added compared to 62,000 in April.
– Thursday’s initial jobless claims and U.S. trade deficit figures will offer additional economic indicators.
– Friday’s highly anticipated U.S. employment report for May is projected to show 125,000 jobs added, with the unemployment rate potentially ticking up to 4.2%.
On the earnings front, several notable companies are scheduled to report this week, including CrowdStrike (CRWD) and Hewlett Packard Enterprise (HPE) on Wednesday, followed by Broadcom (AVGO), DocuSign (DOCU), and Lululemon Athletica (LULU) on Thursday.
Market Outlook: Balancing Optimism with Caution
As markets navigate the current landscape of trade tensions and economic uncertainty, analysts remain cautiously optimistic but acknowledge the challenges ahead. Morgan Stanley’s Chris Toomey expressed skepticism about whether May’s market momentum would continue, suggesting that “we’re probably still range-bound” and that while the worst-case scenario regarding tariffs may have been avoided, “the market’s right now probably pricing in the best-case scenario.”
With Bitcoin trading above $105,000 and oil futures trending higher, investors are diversifying across asset classes while closely monitoring developments in U.S.-China trade relations, with potential talks between President Trump and President Xi Jinping possibly occurring as soon as this week.
As the trading day progresses, market participants will be watching for any signals from Federal Reserve officials, with speeches scheduled from Chicago Fed President Austan Goolsbee and Federal Reserve Governor Lisa Cook later today.