Latest Market Movements TodayMajor Indexes Retreat After Strong May Performance
The stock market opened lower on Monday, June 2, 2025, as renewed trade tensions between the United States and China dampened investor sentiment. Futures indicated a negative start to the trading day, with S&P 500 futures down 0.53%, Nasdaq-100 futures falling 0.68%, and Dow Jones Industrial Average futures declining 0.41%.
This pullback comes after a stellar performance in May, when the S&P 500 surged 6.2%, the Nasdaq Composite jumped 9.6%, and the Dow Jones Industrial Average climbed 3.94% – marking the strongest monthly gains since November 2023 for the major indexes.
The market retreat follows China’s accusation that the United States violated terms of the Geneva trade agreement reached in May, while the U.S. has claimed China failed to uphold its end of the deal. This deterioration in relations has investors concerned about the potential impact on global trade and corporate profits.
Trade Tensions Dominate Market Sentiment
President Donald Trump announced plans to increase U.S. steel and aluminum tariffs from 25% to 50% starting June 4, citing the need to safeguard American industry. Meanwhile, National Economic Council Director Kevin Hassett suggested that President Trump and Chinese President Xi Jinping could discuss trade issues as early as this week.
“We’re probably still range-bound,” Morgan Stanley’s Chris 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.”
The uncertainty surrounding trade policy has particularly affected technology stocks, as many major tech companies rely on global supply chains that could be disrupted by tariffs.
Tech Giants Lead Market Movements
Technology heavyweights continue to dominate market activity. As of June 2, Microsoft (MSFT) leads as the largest tech company with a market cap of $3.4 trillion and a share price of $460.71. Nvidia (NVDA) follows closely at $3.3 trillion with shares trading at $135.22, while Apple (AAPL) holds the third position at $3.0 trillion with shares at $201.47.
These three companies alone account for nearly 20% of the S&P 500’s weight, with Microsoft and Nvidia each representing 6.78% and Apple comprising 5.98% of the index.
Tesla (TSLA), another closely watched stock, currently holds the seventh position in the S&P 500 by weight at 1.99%. The electric vehicle maker’s shares have been volatile amid concerns about how tariffs might affect its global manufacturing strategy.
Key Economic Data and Earnings Reports This Week
Investors are looking ahead to several important economic releases and corporate earnings reports this week. Today’s ISM Manufacturing PMI data for May and a speech by Federal Reserve Chair Powell are expected to provide insights into the health of the U.S. economy and potential monetary policy directions.
The week’s highlight will be Friday’s non-farm payrolls report, which will be closely watched for signs of how April’s tariff announcements might have affected hiring trends.
On the earnings front, several notable companies are scheduled to report this week:
– Tuesday: Crowdstrike (CRWD), Ferguson Enterprises, Hewlett Packard Enterprise (HPE), and Nio (NIO)
– Wednesday: ChargePoint (CHPT) and MongoDB (MDB)
– Thursday: Broadcom (AVGO), Lululemon (LULU), and DocuSign (DOCU)
Market Outlook
Despite today’s pullback, market volatility has generally calmed, with the VIX (volatility index) dipping to 18.6 and holding steady in a narrow range. This suggests investors are less concerned about sudden market shocks, though caution remains ahead of this week’s economic data releases and central bank decisions.
The European Central Bank is expected to cut interest rates at its meeting this week, which could influence global market sentiment. Additionally, worldwide PMI surveys will provide insights into global economic conditions amid ongoing trade tensions.
Commodities have shown strength, with gold trading above $3,300, crude oil rebounding from recent losses, and copper prices rising sharply after Trump’s announcement of increased steel and aluminum tariffs raised speculation about potential tariffs on other metals.
As markets navigate these complex factors, investors should remain vigilant about how trade policies, economic data, and corporate earnings might shape market direction in the coming days and weeks.