Wall Street Holds Steady as Tariff Uncertainty Grows

3 Jun at 10:00 am

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Wall Street Holds Steady as Tariff Uncertainty Grows/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks opened flat as global markets remain steady. Investors await updates on Trump’s tariffs and economic impact. Retail and energy sectors show isolated gains amid uncertainty.

Traders William Lawrence, left, and Mark Mueller work on the floor of the New York Stock Exchange, Thursday, May 29, 2025. (AP Photo/Richard Drew)

Wall Street Holds Steady: Quick Looks

U.S. Markets Flat: The S&P 500 opened near unchanged, Dow Jones added 30 points, and Nasdaq was flat.
Tariff Uncertainty Lingers: Investors are closely watching for updates on President Trump’s trade actions.
Dollar General Surges: Stock jumps nearly 13% after a strong quarterly report and optimistic forecast.
Global Forecast Revised: OECD downgrades U.S. growth to 1.6% for 2025 due to trade tensions.
Solid Job Market: Despite trade disruptions, layoffs remain low, and job market data is expected.
Constellation Energy Rallies: Shares climb after inking a nuclear power deal with Meta Platforms.
Bond Yields Cool: 10-year Treasury yield dips to 4.42% from 4.46% amid debt and borrowing concerns.
Global Indexes Mixed: Asian and European markets post modest moves; Hong Kong gains despite weak data.
South Korea’s Markets Closed: Closure follows political turmoil and snap election.

Wall Street Holds Steady as Tariff Uncertainty Grows

Deep Look

Wall Street Pauses as Global Markets Watch Trump’s Next Move

Wall Street opened quietly on Tuesday, with major indexes drifting in early trading as investors awaited concrete updates on President Donald Trump’s evolving trade policies. The uncertainty has become a central theme for financial markets worldwide, causing both optimism and caution.

The S&P 500 stayed virtually unchanged, clinging to its strong May performance and sitting just 3.4% below its all-time high. The Dow Jones Industrial Average rose modestly by 30 points, or 0.1%, while the Nasdaq composite showed no significant movement.

Tariff Anxiety Takes Center Stage

Investor attention remains fixed on the White House, where new rounds of tariff decisions loom. Markets are weighing the possible economic fallout of these policies, especially after the Organization for Economic Cooperation and Development (OECD) lowered its U.S. growth forecast from 2.8% to 1.6% for this year, citing tariff-related disruptions.

“Trump’s unpredictable trade approach is freezing confidence among consumers and corporations,” said OECD analysts in their latest report.

Although the current data points to moderate economic disruption, the psychological effect has been more severe. Many U.S. companies, from retailers to manufacturers, have withdrawn financial forecasts or flagged rising costs and supply chain concerns.

Corporate Bright Spots

Among the day’s biggest winners was Dollar General, which surged 12.9%. The discount retailer posted better-than-expected quarterly results and raised full-year profit guidance, although it noted that tariffs could dampen consumer behavior in the months ahead.

Another notable gainer, Constellation Energy, saw shares rise 5.7% following a 20-year deal with Meta Platforms to supply nuclear power from its Clinton, Illinois, facility. The long-term agreement boosted investor confidence in stable energy sector growth, particularly in clean and consistent sources like nuclear power.

Job Market Holds Firm

While tariffs pose risks, the U.S. job market appears to be holding strong for now. Analysts are watching for two upcoming labor reports: Tuesday’s job openings data and Friday’s employment report, which will show how hiring trended in May.

Economists predict a moderate hiring slowdown, but signs of resilience in the labor market persist, helping balance out fears of a deeper economic slowdown.

Bond Market Reaction

In the bond market, yields pulled back slightly. The 10-year U.S. Treasury yield slipped to 4.42% from 4.46% the previous day. After a sharp rise over recent months, bond markets are settling amid concerns over how Trump’s fiscal policies — including potential tax cuts — may inflate national debt levels and borrowing costs.

Higher yields tend to make borrowing more expensive and reduce the appeal of equities, especially for income-focused investors.

Global Markets Show Caution

Outside the U.S., financial markets were largely steady, though Hong Kong’s Hang Seng index bucked the trend with a 1.5% gain, despite data showing slower Chinese manufacturing growth in May. Analysts speculate the jump may reflect optimism around stimulus measures from Beijing rather than economic fundamentals.

In contrast, South Korea’s financial markets were closed due to a snap presidential election, called after former President Yoon Suk Yeol was removed from office and now faces legal proceedings tied to his controversial declaration of martial law late last year.

Looking Ahead

Investors continue to closely monitor any signals from Washington regarding global trade. Trump is reportedly planning a call with Chinese President Xi Jinping, which could shape near-term direction for tariffs. However, Beijing has not confirmed any upcoming communication.

Meanwhile, legal challenges continue to cloud the administration’s tariff authority. A federal court recently blocked several Trump executive orders related to trade, though an appeals court has allowed enforcement to continue while legal battles proceed.