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Stock Market News for Jun 5, 2025

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U.S. stocks ended mostly lower on Wednesday after data showed private sector payrolls hit a two-year low, suggesting that a lack of clarity over President Donald Trump’s trade policies could weigh on the nation’s economy. The S&P ended nearly flat, while the Dow slipped. However, the Nasdaq ended in positive territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) slid 0.2% or 91.90 points, to close at 42,427.74 points.   

The S&P 500 added 0.01% or 0.44 points to finish at 5,970.81 points. Utilities and energy stocks were the worst performers.

The Utilities Select Sector SPDR (XLU) fell 1.8%, while the Energy Select Sector SPDR (XLE) declined 2%. The Financials Select Sector SPDR (XLF) lost 0.6%. Six of the 11 sectors of the benchmark index ended in positive territory.

The tech-heavy Nasdaq rose 0.3%, or 61.53 points, to end at 19,460.49 points.

The fear-gauge CBOE Volatility Index (VIX) was down 0.45% to 17.61. Advancers outnumbered decliners on the NYSE by a 1.3-to-1 ratio. On Nasdaq, a 1.18-to-1 ratio favored advancing issues.  A total of 14.5 billion shares were traded on Wednesday, lower than the last 20-session average of 17.8 billion.

Disappointing Jobs Data Raise Concerns

The Dow snapped its four-day winning streak, while the S&P 500 struggled on Wednesday as disappointing jobs data raised concerns over the economy’s health. According to a report from payrolls processing company Automatic Data Processing, Inc. ((ADP - Free Report) ), the economy added only 37,000 private jobs in May, less than the downwardly revised 60,000 jobs in April and sharply lower than the consensus estimate of 110,000.

Trump slammed Federal Reserve Chairman Jerome Powell moments after the figures were out, saying, “Too Late, Powell,” as he called for immediate interest rate cuts.

Investors also focused on trade negotiations between the United States and its trading partners. Trump and the Chinese President are scheduled to talk sometime this week as tensions cease to ease between the world’s two biggest economies.

The lack of clarity over Trump’s upcoming tariff policies has raised concerns among investors. Stocks have rebounded over the past month, and investors are still confident that there will be a positive outcome from the ongoing trade negotiations between the United States and its trading partners.

Meanwhile, shares of Tesla, Inc. ((TSLA - Free Report) ) declined 3.6% after the electric carmaker’s sales fell for the fifth straight month in European markets.

Also, shares of Dollar Tree, Inc. ((DLTR - Free Report) ) tumbled 8.4% after the retailer said that its second-quarter adjusted profit could plummet as much as 50% owing to the tariff-fueled volatility. Dollar Tree has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

In other economic data released on Wednesday, the Institute for Supply Management's (ISM) Services Purchasing Managers Index (PMI) fell to 49.9 in May from April’s reading of 51.6. This is the first time the services sector has declined in nearly a year. 


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