Stan Choe, AP Business Writer
NEW YORK (AP) – US stocks won their place on Tuesday, and financial markets around the world are relatively stable as they continue to wait for more updates on how much it is affecting President Donald Trump’s tariffs and the economy.
The S&P 500 has increased by 0.6% in afternoon trading, reducing the modest profit added to its star. It went back to within 3% of the greatest set of all time earlier this year after falling below 20% two months ago.
The Dow Jones industrial average rose 170 points (0.4%) as of 12:40 pm east time, with the Nasdaq Composite rising 1%.
Dollar General rose 14.3% in one of the market’s biggest profits, after reporting stronger profits and revenues at the beginning of the year than analysts expected. Discount retailers also warned that “uncertainty exists for the rest of the year” as it could affect tariffs and customers, but they raised their profit and revenue forecasts over the year.
Many other companies have cut or withdrawn financial forecasts for next year due to the uncertainty caused by Trump’s repeated tariffs. The Organization for Economic Cooperation and Development said Tuesday it forecasts growth of 1.6% this year in the US economy from 2.8% last year.
But while Trump’s tariffs certainly made our households feel more pessimistic about where the economy and inflation are heading, reports have only suggested a gradual hit so far. Manufacturers have begun to feel the effect, but overall job markets are doing well overall, as layoffs remain relatively low and inflation remains unseparable.
A report on Tuesday morning showed employers were promoting more jobs at the end of April than economists expected. It will be the setting for more important reports coming on Friday. This shows how many jobs and fired US employers in May.
On the trade front, there remains high hopes on Wall Street that Trump will ultimately reach trade deals with other countries that will lower tariffs, particularly the world’s second largest economy. The US said it hopes President Donald Trump will talk to Chinese leader Xi Jinping this week. A spokesman for China’s foreign ministry said Tuesday there was no information on it.
On Wall Street, constellation energy rose 0.7% after signing a 20-year contract to provide electricity to the Metaplatform from a nuclear power plant in Clinton, Illinois.
In the bond market, the Treasury yields are relatively stable. Treasury yields rose to 4.47% in 2010 from 4.46% late Monday, but were lower early in the morning before stronger than expected reports on US employment openings.
After a sharp rise in yields over the past two months, it’s a cooldown. Yields have risen in part to worry about how the US government will be set to add trillions of dollars to its debt through tax cuts.
In addition to making the money more expensive for US households and businesses to borrow, the higher the Treasury yield, the more discourages investors from paying higher prices for stocks and other investments.
In overseas stock markets, indexes were mixed amid almost modest movements in Europe and Asia.
Hong Kong is the exception, with Hang Sen jumping 1.5%. It came despite reports showing that China’s manufacturing activities were slower in May.
The South Korean market has been shut down due to the SNAP presidential election, sparked by the expulsion of conservative Yoon Sook Yeol, who is facing an explosive trial over accusations of a rebellion against his short-lived martial law imposition in December.
AP business writers Matt Ott and Elaine Kurtenbach contributed.
Original issue: June 3, 2025 10:02am EDT
