Market Pulse – Live UpdatesMarket Summary: Mixed Close as Trade Tensions Linger
The major U.S. stock indexes closed mixed on Tuesday, June 3, 2025, as investors weighed ongoing trade tensions against strong corporate earnings. The technology-heavy Nasdaq Composite led gains, rising 0.9% to close at 19,242.61, while the S&P 500 edged down 0.21% to 5,935.94. The Dow Jones Industrial Average slipped 0.18% to 42,305.48.
Chip manufacturers were standout performers, with Nvidia (NVDA) and Broadcom (AVGO) both climbing more than 2%, with Broadcom on track to close at a record high. Technology and energy emerged as the best-performing sectors of the S&P 500, while the dollar strengthened against major currencies.
After-Hours Movers: Biotech and Retail Stocks Lead
In after-hours trading, several stocks made significant moves. MoonLake Immunotherapeutics (MLTX) surged 19.02% to $48.99 following positive clinical trial results. Other notable gainers included Shineco (SISI), which skyrocketed 62.49% to $0.70, and Alzamend Neuro (ALZN), which jumped 42.86% to $5.00.
On the downside, ModivCare (MODV) plummeted 19.55% to $1.77 after disappointing quarterly results, while CleanCore Solutions (ZONE) fell 18.97% to $2.35.
OECD Slashes U.S. Growth Forecast Amid Trade Concerns
The Organization for Economic Cooperation and Development (OECD) sharply lowered its growth forecasts for the U.S. economy on Tuesday, citing challenges from tariffs and policy uncertainty. 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. In March, the organization had forecast U.S. growth at 2.2% this year.
The OECD also cut its forecast for global GDP growth to 2.9% for both this year and next, down from 3.3% in 2024, assuming current tariff rates remain unchanged.
Trade Tensions Continue to Simmer
Markets have shown resilience despite ongoing trade concerns, bolstered by a strong earnings season and a perception that President Trump’s trade policies won’t trigger a recession. Trump has paused some of his most extreme tariff proposals under market pressure, though progress in negotiations with China, Japan, and the European Union remains unclear.
Beijing and Washington have exchanged accusations about violations of their recent trade truce in recent days. The White House indicated that Presidents Trump and Xi Jinping are likely to speak this week, though Beijing has not confirmed this.
Corporate Spotlight: Retail and Auto Sectors
Dollar General (DG) shares jumped after the discount retailer raised its outlook, stating it was well-positioned to handle various economic environments. The company noted that tariff-driven price increases are enhancing the appeal of discount chains.
Meanwhile, shares of “Big Three” automakers General Motors (GM), Ford Motor (F), and Stellantis (STLA) remained under pressure following Monday’s decline after President Trump announced plans to double U.S. steel tariffs to 50%, potentially increasing manufacturing costs significantly.
Key Economic Data and Upcoming Events
Investors are closely monitoring today’s release of JOLTS Job Openings data for April, which could provide insights into labor market conditions.
Additionally, the European Central Bank is expected to cut interest rates at its upcoming meeting on Thursday, June 5, amid weakening growth and inflation outlook in the eurozone.
Market Outlook
Analysts remain cautiously optimistic about market performance in June, following strong gains in May when the S&P 500 climbed 6.15%, the Nasdaq surged 9.56%, and the Dow rose 3.94%.
“Conversations between Trump and Xi could prove critical to much-needed clarity for the largest economies in the world,” said Jay Woods, chief global strategist at Freedom Capital Markets. “If they get clarity, look for another leg higher in this market and talk of new all-time highs. If this back-and-forth continues, then expect volatile markets ahead.”