S&P closes higher on trade hopes, Nvidia lifts Nasdaq

S&P closes higher on trade hopes, Nvidia lifts Nasdaq

By Saeed Azhar, Kanchana Chakravarty and Sukriti Gupta

Mon June 2, 2025 7:02 PM

All three indexes started the day in the red, the Dow down over 400, the S&P down 50, until 10 a.m. when all three started a recovery which lasted all day to close modestly in the black. Trump has once again doubled down on his tariffs and today China slammed back protesting the accusation they have violated agreements. Though some traders continue to watch trade progress with a jaundiced eye, others see optimism whereas instead of seeing these threats as a bad thing are calling them “nudges to move negotiations towards the finish line.” There is today added optimism with Trump’s announcement that he wants trade proposals from all these countries by Wednesday.  

This caused the shares of steel companies, one of the industries where tariffs are being doubled, to surge. The Fed continues its long-held position that they are watching a multitude of data carefully to assess their next move as the markets price in two rate cuts this year. Though inflation continues to move ever so slightly closer to the Fed’s 2% target, the biggest factor holding rates steady for now is how strong and resilient the labor market has been in light of all the uncertainty. But a contraction in supply for the third straight month per today’s ISM report also signals coming shortages. All eyes are on the payrolls report coming Friday. At 15.67 billion, today’s volume fell well below the 4-week average of 17.8 billion. 

DJ: 42,270.07  +54.34      NAS: 19,113.77  -62.11       S&P: 5,911.69  -0.48        5/30

DJ: 42,305.48  +35.41      NAS: 19,242.61  +128.85    S&P: 5,935.94  +24.25        6/2

Mon 6-2-25 7:02 pm S&P closes higher on trade hopes, Nvidia lifts Nasdaq | Reuters