Full Market Coverage HereMajor Indexes Continue Upward Momentum Despite Economic Concerns
U.S. stock markets edged higher in Wednesday’s trading session, extending their winning streak to a third consecutive day despite weaker-than-expected employment data. As of late afternoon trading on June 4, 2025, the S&P 500 rose 0.25% to 5,985.54, while the Dow Jones Industrial Average gained 0.16% to 42,585.95. The tech-heavy Nasdaq Composite advanced 0.31% to 19,459.42.
The modest gains came after the ADP employment report showed private-sector hiring slowed dramatically in May, with just 37,000 jobs added—the slowest pace in more than two years. Additionally, the Institute for Supply Management reported that U.S. services activity unexpectedly contracted in May, raising concerns about economic momentum.
“Today’s market resilience in the face of disappointing economic data suggests investors are increasingly betting on Federal Reserve rate cuts later this year,” said market strategist David Sekera. “The futures market indicates the Fed is unlikely to cut rates before September, but deteriorating economic conditions could accelerate that timeline.”
Trade Developments Drive Market Sentiment
Market participants remained focused on developments in international trade relations, which have been a key driver of market volatility in recent weeks. The European Union’s trade commissioner, Maroš Šefčovič, reported that talks with Washington were progressing following a conversation with U.S. Trade Representative Jamieson Greer, though he noted that the overnight doubling of steel and aluminum levies to 50% hasn’t helped discussions.
Meanwhile, tensions between the U.S. and China continued to simmer. President Trump took to Truth Social early Wednesday, describing Chinese President Xi Jinping as “very tough, and extremely hard to make a deal with.” The White House has indicated that a leader-to-leader conversation is expected soon, as both sides have complained about compliance with their temporary trade agreement.
Notable Stock Movers
Several individual stocks made significant moves on Wednesday:
– Applied Digital Corporation (APLD) surged over 25% to $12.82, making it one of the day’s top gainers and most actively traded stocks.
– Guidewire Software (GWRE) jumped more than 20% to $262.92 after reporting strong quarterly results that exceeded analyst expectations.
– Asana (ASAN) plummeted 17.46% to $15.65 following underwhelming first-quarter results. Despite beating revenue and EPS expectations, investors were disappointed by single-digit revenue growth and concerns about buyer caution in enterprise and technology verticals.
– Dollar Tree (DLTR) dropped 10.40% to $86.67 as investors reacted negatively to the company’s latest financial performance.
– Nvidia (NVDA), which recently surpassed Microsoft in market capitalization, traded relatively flat at $141.36 after strong gains earlier in the week.
Economic Outlook and Upcoming Events
Investors are closely watching Friday’s upcoming nonfarm payrolls report, which will provide a more comprehensive view of the labor market following today’s disappointing ADP figures. Economists are projecting moderate job growth, though expectations may be revised downward after today’s data.
The Organization for Economic Co-operation and Development recently cut its U.S. growth outlook to 1.6% for 2025, down from an earlier forecast of 2.2%, citing tariff uncertainty as a key factor.
Looking ahead, market participants should prepare for potential volatility as economic growth is expected to slow sequentially over the remainder of 2025, according to Morningstar’s U.S. economics team. Supply and transportation dislocations resulting from recent trade policies could lead to earnings disruptions across various sectors.
Market Sentiment and Outlook
Despite recent gains, market sentiment remains cautious. The S&P 500 is trading at a modest 3% discount to fair value, according to Morningstar’s composite valuations, which is close to the historical midpoint.
“Be wary of the recent complacency; there’s turbulent water ahead before the skies clear,” warned David Sekera, chief U.S. market strategist at Morningstar.
Investors should continue monitoring trade negotiations, upcoming economic data releases, and corporate earnings reports for signals about market direction in the coming weeks. With the S&P 500 and Nasdaq having posted their best monthly performance since late 2023 in May, maintaining this momentum will depend largely on resolution of trade uncertainties and signs of economic resilience.