Stock Market Today: Tech Leads Gains as Nvidia Surges Amid Trade Concerns

Major Indexes Continue Strong Start to June Despite Economic Headwinds

The technology-heavy Nasdaq Composite led major indexes higher on Tuesday, June 3, 2025, as tech stocks continued their momentum from May, which was the best month for major indexes since 2023. By late afternoon, the Nasdaq was up more than 0.5%, while the Dow Jones Industrial Average and S&P 500 posted smaller gains, wavering throughout the session amid mixed economic signals.

Nvidia (NVDA) was the standout performer, surging more than 3% as investors continued to bet on the artificial intelligence leader despite recent challenges with China export restrictions. The company recently reported a 69% year-over-year increase in revenue for its fiscal Q1 2026, demonstrating that AI momentum remains robust.

Economic Concerns Temper Market Enthusiasm

Market gains came despite troubling economic news as the Organization for Economic Cooperation and Development (OECD) sharply cut its growth forecasts for the U.S. economy. The OECD now expects U.S. real GDP growth to fall to just 1.6% in 2025 and 1.5% in 2026, down from 2.8% in 2024, citing fallout from tariffs and policy uncertainty.

In fresh evidence of economic challenges, a government report showed U.S. factory orders declined 3.7% in April, worse than economists expected. This followed feeble U.S. manufacturing data released on Monday, adding to concerns about the impact of ongoing trade tensions.

Trade Tensions Continue to Loom Over Markets

Investors remain focused on trade policy developments as the Trump administration navigates complex negotiations with China, Japan, and the European Union. Beijing and Washington have traded accusations about violations of their recent trade truce over the past few days, with the White House indicating that Presidents Trump and Xi Jinping were likely to speak this week.

The market is also awaiting progress on Trump’s tax-and-spending legislation, which narrowly passed the House last month but now faces uncertainty in the Senate.

Notable Stock Movers

Beyond Nvidia’s strong performance, other tech giants showed mixed results. Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) were each down slightly in late-day trading, while Apple (AAPL) and Tesla (TSLA) posted modest gains.

Constellation Energy (CEG) was a standout performer, jumping 12% following news that the nuclear power company signed a 20-year agreement to supply Meta Platforms as the tech giant builds out its AI capabilities. Other nuclear power stocks, including Oklo (OKLO), Nuscale (SMR), and Vistra (VST), also surged on the news.

Dollar General (DG) shares soared more than 10% after the discount retailer reported better-than-expected quarterly results and raised its outlook. The company noted it had assessed tariffs’ impact on consumer behavior, with tariff-fueled price rises increasing the appeal of discount chains.

Shares of major automakers remained under pressure following Monday’s declines. General Motors (GM), Ford Motor (F), and Stellantis (STLA) all edged lower in late trading amid ongoing concerns about President Trump’s plans to double U.S. steel tariffs to 50%, which could significantly increase costs for automobile manufacturing.

Commodities and Bonds

Oil prices continued their upward trend, with West Texas Intermediate crude futures rising 1.2% to $63.30 per barrel, reaching their highest level since mid-May amid geopolitical uncertainties.

Gold futures retreated 0.7% to $3,350 an ounce, giving back some of Monday’s gains. The yield on the benchmark 10-year Treasury note dipped to 4.42% from 4.46% at Monday’s close, while the U.S. dollar strengthened against a basket of major currencies.

Key Economic Data and Events Ahead

Investors are closely watching a series of important economic indicators this week that could significantly impact market sentiment:

– Today’s Job Openings and Labor Turnover Survey (JOLTS) data for April was released at 10:00 AM ET, providing insights into labor market conditions.

– Wednesday will bring the ADP National Employment Report and ISM Non-Manufacturing Index, offering further clues about economic health.

– Thursday will see the release of revised productivity and costs data, along with trade balance figures.

– The week culminates with Friday’s crucial May jobs report, which economists expect to show approximately 125,000 jobs added and an unemployment rate of 4.2%.

Looking further ahead, the Federal Reserve’s next policy meeting is scheduled for June 17-18, with market participants increasingly focused on when the central bank might begin cutting interest rates amid mixed economic signals.

Market Outlook

Despite today’s gains, stocks have struggled for direction since mid-May as investors weigh strong corporate earnings against economic headwinds and trade policy uncertainty. The technology sector continues to demonstrate resilience, with companies like Nvidia showing that AI investments remain robust despite broader economic concerns.

As we move deeper into June, market participants will be closely monitoring upcoming economic data, particularly Friday’s jobs report, for signals about the health of the U.S. economy and potential implications for Federal Reserve policy in the months ahead.