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Stock Market News for Jun 3, 2025

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U.S. stocks closed higher on Monday, the first trading day of June, as investors shrugged off trade war worries and remained optimistic about more trade deals to be reached in the coming days. All three major indexes ended in positive territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) gained 0.1% or 35.41 points, to close at 42,305.48 points.   

The S&P 500 added 0.4% or 24.25 points to finish at 5,935.94 points. Energy and tech stocks were the biggest gainers.

The Energy Select Sector SPDR (XLU) gained 1.3%, while the Technology Select Sector SPDR (XLK) rose 0.9%. The Materials Select Sector SPDR (XLB) added 0.6%. Ten of the 11 sectors of the benchmark index ended in positive territory.

The tech-heavy Nasdaq climbed 0.7%, or 128.85 points, to end at 19,242.61 points.

The fear-gauge CBOE Volatility Index (VIX) was down 1.13% to 18.36. Advancers outnumbered decliners on the NYSE by a 1.06-to-1 ratio. On Nasdaq, a 1.11-to-1 ratio favored advancing issues.  A total of 15.67 billion shares were traded on Monday, lower than the last 20-session average of 17.8 billion.

China Pushes Back Against Trump’s Tariffs Claims

China slammed President Donald Trump on Monday after he accused Beijing of violating a temporary trade agreement and blamed the United States of failing to uphold certain features of the trade deal.

China’s comments indicate that trade negotiations between the two nations have been deteriorating after a temporary pause on tariffs was announced last month. Treasury Secretary Scott and Chinese Vice Premier He Lifeng had a meeting in Geneva last month to reach a trade deal between the two nations.

Also, Trump is likely to talk to Chinese President Xi Jinping this week and find a solution to the rising trade tensions and negotiate on tariffs.

Meanwhile, tensions between the United States and the European Union (EU) escalated after Trump said on Friday that he would double tariffs on steel and aluminum to 50%. On Monday, the EU slammed the United States, saying that it “undermines” the trade negotiations.

However, steel stocks rallied on hopes of increased duties. Shares of Steel Dynamics, Inc. ((STLD - Free Report) ) jumped 10.3%, while Nucor Corporation ((NUE - Free Report) ) soared 10.1%. Steel Dynamics has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Monday’s moves came after all three indexes posted solid monthly gains to close out May on a high. Investors are now looking forward to a batch of key economic data set to be released over the week.

Economic Data

In economic data released on Monday, the Institute for Supply Management (ISM)  said that its manufacturing PMI came in at 48.5% in May, down from April’s 48.7, to hit a six-month low. Any reading below 50 indicated contraction in the manufacturing sector.

The Commerce Department's Census Bureau reported that construction spending fell 0.4% month over month in April, for the second straight month after a downwardly revised 0.8% drop in March.


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