Wall Street drives gains; tariff uncertainty persists

Wall Street is recovering and approaching all-time highs as investors assess expectations for trade deals and the impact of tariffs.

On Tuesday, June 3, 2025, Wall Street saw U.S. stocks rise, approaching all-time highs, fueled by speculation surrounding tariffs and a resilient labor market despite corporate caution.

New York, NY – America’s financial heart, Wall Street, experienced a rebound on Tuesday, June 3, 2025, with major stock indexes approaching all-time highs. The S&P 500 rose 0.6%, consolidating a strong May and coming within 2.8% of its all-time high. The Dow Jones Industrial Average advanced 214 points (0.5%), and the Nasdaq Composite climbed 0.8%.

This optimism in the New York market comes amid continued anticipation of news about President Donald Trump's tariffs and their economic impact. Expectations of possible trade agreements have inject hope among investors, partially alleviating concerns.

Dollar General's stock was a notable bright spot, rising 15.8% after reporting better-than-expected earnings and revenue for the start of the year, prompting it to raise its full-year forecast. However, the discount retailer warned of "uncertainty for the remainder of the year" due to tariffs and their potential impact on consumers.

Several other companies have reduced or withdrawn their financial forecasts for next year, citing the uncertainty created by the fluctuating implementation of Trump's tariffs. The Organization for Economic Cooperation and Development (OECD) projected 1.6% growth for the U.S. economy this year, a slowdown from 2.8% the previous year.

Although tariffs have made American households more pessimistic about the economy and inflation, reports indicate a moderate impact so far. While manufacturers have begun to feel the effects, the overall labor market remains robust, with low layoff rates and inflation that has not increased significantly. A recent report noted that U.S. employers had more job openings at the end of April than economists anticipated, reinforcing the picture of a resilient labor market. This data sets the stage for a crucial jobs report on Friday, which will detail hiring and layoff activity for May.

"The market has returned to its record levels almost as quickly as it fell in April, driven by hopes for trade deals."

On the trade front, Wall Street remains hopeful that President Trump will finalize trade deals with other nations, particularly China, which would ultimately lead to lower tariffs. Despite rumors of a possible conversation between President Trump and Chinese leader Xi Jinping this week, a spokesperson for the Chinese Foreign Ministry said they had no information on the matter.

In the bond market, Treasury yields remained relatively stable, with the 10-year Treasury yield falling slightly to 4.45% from 4.46% on Monday. This cooling follows a sharp rise in yields over the past two months.