Complete Market OverviewMajor Indexes Retreat After Strong May Performance
The U.S. stock market opened lower on Monday, June 2, 2025, as renewed tensions between the United States and China weighed on investor sentiment. As of early trading, the S&P 500 was down 0.01% at 5,876.62, the Nasdaq Composite fell 0.11% to 21,205.74, and the Dow Jones Industrial Average showed a slight gain of 0.13% at 42,076.04.
This pullback follows an impressive performance in May, with the S&P 500 posting its best monthly gain since November 2023, rising 6.15%. The Nasdaq Composite surged 9.56% last month, while the Dow Jones Industrial Average advanced 3.94%.
US-China Trade Tensions Resurface
The market decline comes as 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.
National Economic Council director Kevin Hassett suggested on Sunday that President Donald Trump and Chinese President Xi Jinping could have a conversation about trade as early as this week. This comes after a brief pause in tensions following a meeting between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Geneva, where they agreed to a 90-day suspension of most tariffs.
“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.”
Key Economic Data and Earnings Releases This Week
Investors are looking ahead to several important economic data releases this week. Today, Construction and ISM Manufacturing data will be released at 10:00 AM Eastern Time. Later in the week, the Employment Situation report will be published on Friday, June 6.
On the earnings front, several notable companies are scheduled to report this week, including NIO (NIO), Signet Jewelers (SIG), CrowdStrike (CRWD), and Hewlett Packard Enterprise (HPE) on Tuesday, June 3. MongoDB (MDB) is expected to report on Wednesday, while Broadcom (AVGO), DocuSign (DOCU), and Lululemon Athletica (LULU) will release their earnings on Thursday, June 5.
Notable Stock Movements and Corporate News
Nvidia (NVDA) shares were down 2.85% in the previous session, despite the stock being up 23.47% year-to-date. The AI chipmaker has been a market leader with a market capitalization of $3.29 trillion.
Tesla (TSLA) saw a significant decline of 3.29% in the last session, though the stock has gained an impressive 94.85% year-to-date, making it one of the best performers among large-cap stocks.
In corporate news, Indivior PLC (INDV) announced its intention to cancel its secondary listing on the London Stock Exchange while maintaining its primary listing on Nasdaq. The company cited better alignment with its U.S. business focus, as over 80% of its net revenue is generated from the U.S. market.
Apollo Hospitals reported higher-than-expected profits in the fourth quarter, citing strong demand for its healthcare services, which may positively impact its stock performance today.
Commodity Markets Show Strength
Commodities are showing strength in early trading, with crude oil up 3.41% to $62.87 per barrel. Gold continues its bullish trend, rising 1.92% to $3,352.61 per ounce. Copper also showed significant gains, up 4.34% to $4.88 per pound.
Market Outlook
Analysts remain cautious about the market’s near-term prospects given the ongoing trade tensions and recent GDP data showing slower economic growth. The United States inflation rate stands at 2.30%, down from 2.40% in the previous month, while the Federal Reserve has maintained its funds rate at 4.50%.
The S&P 500 is expected to trade at 5,846.66 points by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Looking further ahead, it is estimated to trade at 5,655.71 in 12 months’ time, suggesting some potential downside from current levels.
As investors navigate these uncertain waters, they will be closely monitoring upcoming economic data releases, earnings reports, and any developments in the U.S.-China trade relationship that could impact market direction in the coming days and weeks.