On June 2, the US stock markets are experiencing mixed results amid positive news on trade deals and weaker labor market data.
Overview of US Stock Markets
On June 2, the Dow Jones decreased by 40 points, or 0.10%. At the same time, the S&P 500 rose by 0.33% and the tech-heavy Nasdaq saw the largest increase at 0.78%.
Trade Deals Inspiring Optimism
Optimism has emerged from new positive news regarding trade deals. US President Donald Trump announced a preliminary trade deal with Vietnam, under which imports from Vietnam to the US will be subject to a 20% tariff while US goods to Vietnam will be tariff-free. The US will also charge a 40% duty on transshipping to combat tariff evasion.
Weak Employment Data and Its Impact
Weak employment figures from ADP also contributed to rate cut expectations. Specifically, ADP data revealed that 33,000 jobs were lost in the private sector in June, significantly below the expected increase of 100,000. If weak labor market conditions continue, the Federal Reserve may be compelled to cut interest rates to boost the economy.
Overall, the state of the US stock market presents mixed results, considering both positive trade news and negative employment statistics. This creates uncertainty regarding the outlook for the economy and stocks such as Tesla, which despite positive results, faced challenges in vehicle deliveries.
