US Stock Market Gains Amidst Economic Uncertainty and Trade Tensions

Market Overview

US stocks experienced a notable rise on June 3, 2025, buoyed by positive economic data that offset the concerns raised by the OECD regarding potential economic damages from President Trump's tariffs.

The S&P 500 (^GSPC) closed up by 0.6%, while the Dow Jones Industrial Average (^DJI) increased approximately 0.5%. The tech-savvy Nasdaq Composite (^IXIC) eased slightly from session highs, still rising around 0.8%, building on the strong momentum from the week's start.

Furthermore, small-cap stocks rallied, with the Russell 2000 (^RUT) surging roughly 1.5%.

Nvidia Overtakes Microsoft

In a significant corporate milestone, Nvidia (NVDA) surpassed Microsoft (MSFT) to become the world's most valuable company, with a market capitalization of $3.444 trillion compared to Microsoft’s $3.441 trillion.

This shift marks an impressive rise for Nvidia, which has cemented its position at the forefront of AI technology.

Job Market Indicators

Highlighting the health of the labor market, a JOLTS update indicated that job openings unexpectedly rose to 7.39 million at the end of April, up from 7.2 million in March. This data is critical as it arrives ahead of the significant May jobs report scheduled for release this upcoming Friday.

The hiring rate also saw an uptick, suggesting stability in the job market despite the effects of ongoing tariff hikes.

OECD Economic Outlook

Conversely, the OECD has slashed its forecast for global economic growth, projecting a decline in the US economy from 2.8% growth in the previous year to only 1.6% this year, followed by 1.5% in 2026. This adjustment stems from concerns tied to Trump's trade policies impact on investment confidence.

Industry Highlights

In sector performances, energy stocks (XLE) led the market gains, followed closely by technology (XLK) and consumer discretionary (XLY). In contrast, real estate (XLRE) and consumer staples (XLP) experienced minor declines of about 0.5%.

Dollar General (DG) led the S&P 500 with an impressive rise, following record first-quarter sales as consumers increasingly sought cost-efficient retail options.

Trade Developments and Future Outlook

As the trade landscape continues to shift, the OECD urged swift actions to lower trade barriers. President Trump is reportedly pushing for final negotiations with trade partners, aiming for significant tariff agreements as deadlines approach.

Amidst this backdrop, analysts remain cautious yet optimistic as they await the damning impact of tariffs on various sectors while monitoring ongoing economic indicators.