U.S. Stocks Dip as Trade Tensions Flare, Jobs Data Looms

U.S. stocks opened June lower as renewed trade tensions between the U.S. and China rattled investors. The S&P 500, coming off its best May since 1990, faced headwinds after China accused the U.S. of violating their trade truce—mirroring President Trump’s earlier claims. Meanwhile, the White House doubled steel and aluminum tariffs, adding to market jitters. With June historically weak for equities, attention now turns to Friday’s jobs report, expected to show slower hiring amid tariff pressures.

Market strategists note investors are growing numb to trade headlines, with stocks no longer swinging wildly on each development. However, a clear divide persists: mega-cap tech (like the MAG7) continues to outperform, while small caps lag due to tariff and rate sensitivity. The question now is whether economic data—like this week’s payrolls report—will confirm resilience or signal cracks. A weak reading could reignite recession fears, while strong numbers might delay Fed rate cuts.

Federal Reserve Chair Jerome Powell’s remarks later today will be scrutinized for clues on inflation and policy. Economists warn that higher tariffs could temporarily spike prices, complicating the Fed’s path. While some, like Governor Chris Waller, still foresee 2024 rate cuts, others argue the central bank may stay on hold if inflation proves sticky. The labor market remains a bright spot, but slowing wage growth and softening consumer spending could soon challenge that narrative.

Market Volatility and Trade Tensions Dominate June’s Opening

In corporate news, Tesla fell as European sales showed stark regional disparities, while Moderna gained on FDA approval for its updated COVID vaccine. DraftKings tumbled after Illinois passed a sports betting tax hike, and Campbell Soup rallied as cost-conscious consumers boosted sales. As trade uncertainty lingers, markets face a tug-of-war between resilient earnings and mounting macro risks—with the next major catalyst likely being Friday’s jobs data.

Make money without lifting your fingers: Start using a world-class auto trading solution 

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.