Wall Street Starts June Cautiously as Oil Prices Surge/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street opened June with cautious movement after a strong May performance. Oil prices jumped nearly 4% amid OPEC+ moves and Ukraine-Russia tensions. New U.S.-China trade friction and rising bond yields pressured market sentiment.
Markets & Oil Price Volatility: Quick Looks
- S&P 500 dipped 0.1%; Dow down 149 points; Nasdaq up 0.2%
- U.S. crude oil surged 3.8%, Brent crude rose 4.3%
- OPEC+ confirms increased oil production amid geopolitical risks
- Trump announces 50% tariffs on steel and aluminum
- U.S.-China trade tensions rise over AI chip and visa policy
- Treasury yields increase as deficit and debt concerns mount
- U.S. steel stocks rise, automakers decline amid tariff news
- Asian and European markets also react negatively
Deep Look: Wall Street Opens June with Uneasy Trading as Oil and Tariff Worries Rise
NEW YORK — U.S. stocks opened the month of June with mixed movement on Monday, as cautious investors digested a cocktail of geopolitical tensions, rising commodity prices, and renewed concerns about tariffs and national debt.
After May’s strong rally — the S&P 500’s best performance since 2023 — markets began June more hesitantly. The S&P 500 was down 0.1% in early trading, while the Dow Jones Industrial Average shed 149 points, or 0.4%. The tech-heavy Nasdaq offered a sliver of optimism, inching up 0.2%.
Oil Prices Surge Despite OPEC+ Production Increase
One of the most notable moves came in the oil markets. Crude prices jumped nearly 4%, with U.S. benchmark West Texas Intermediate (WTI) rising 3.8% to $63.11 per barrel. Brent crude, the international standard, climbed 4.3% to $65.50.
Interestingly, the price spike followed an announcement from OPEC+ to raise oil production — a move that typically pressures prices lower by increasing supply. However, the market had already anticipated the announcement. Meanwhile, recent Ukrainian attacks deep inside Russian territory have heightened fears of potential supply disruptions, injecting fresh uncertainty into global energy flows.
Tariffs Return to Center Stage
Adding to investor anxiety was the Trump administration’s decision to double tariffs on imported steel and aluminum. Speaking in Pennsylvania on Friday, President Donald Trump said the tariff hike — to 50% — aims to protect the struggling U.S. steel industry. He later confirmed on Truth Social that the new rates would take effect Wednesday.
While domestic steelmakers like Nucor (+12.1%) and Steel Dynamics (+13.4%) rallied, the broader impact on industrial stocks was mixed. Automakers, who depend heavily on steel and aluminum, fell under pressure. Ford dropped 2.7%, while General Motors lost 2.4%.
Analysts warn that the broader consequences of higher tariffs could ripple through the economy, lifting prices for a range of goods and potentially slowing demand.
Tensions Flare with China Over Tech and Trade
Further fueling market unease, China criticized the U.S. for several policy moves it claims breach recent trade agreements. Among them: new AI chip export controls, a halt on chip design software sales to China, and a pending revocation of certain student visas.
China’s Commerce Ministry said these actions “seriously violate the consensus” reached during last month’s Geneva trade talks, undermining efforts to reduce tariff-related frictions between the world’s two largest economies.
Trump, meanwhile, accused China of violating the terms of the trade truce, which had briefly paused several tariffs. These escalating tensions cast a shadow over hopes for a more stable U.S.-China relationship — one of the key drivers behind May’s market surge.
Rising Bond Yields Add Pressure
In the bond market, Treasury yields rose again, reflecting increasing concern about federal deficits and mounting government debt. The yield on the 10-year Treasury climbed to 4.43%, up from 4.41% on Friday — and up sharply from 4.01% just two months ago.
Higher yields can drag on equities by making bonds more attractive and by raising borrowing costs for both consumers and businesses. The bond market shift follows Trump’s sweeping tax cut plan, which experts say would add trillions to the national debt over the next decade.
Despite White House assurances that the cuts would spur enough economic growth to offset the cost, market watchers remain skeptical.
Global Markets Mirror U.S. Caution
The unease wasn’t confined to Wall Street. Overseas markets also traded lower, with Hong Kong’s Hang Seng Index falling 0.6% in reaction to the U.S.-China rhetoric. Japan’s Nikkei 225 slid 1.3% following a report showing slower contraction in Chinese factory activity, a sign that recovery remains weak.
Most European indices also started the week in the red, with analysts citing global trade tensions, fluctuating oil prices, and central bank policy concerns.
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