The S&P 500 barely budged Wednesday as weak job and service sector data revealed the economic fallout from President Trump’s trade war tactics.
The benchmark S&P 500 index closed nearly flat on Wednesday (June 4), rising just 0.01%, as investors weighed tech stock gains against troubling economic signals tied to President Donald Trump’s erratic trade policies.
While tech shares kept the market afloat, enthusiasm quickly waned after data showed the U.S. services sector contracted in May for the first time in nearly a year. On top of that, input prices for businesses rose—a worrying sign that the U.S. is facing both slowing growth and persistent inflation.
Labor market data also disappointed. According to the ADP National Employment Report, private employers added the fewest jobs in more than two years last month. All eyes are now on Friday’s nonfarm payrolls report for a clearer picture of how trade volatility is rattling U.S. hiring.
Washington has now doubled tariffs on imported steel and aluminum to 50%, and June 4 marked Trump’s deadline for global trading partners to present revised deals—before more punishing levies kick in this July.
Investors are anxiously watching for signs of breakthrough in trade talks, particularly a possible call between Trump and Chinese President Xi Jinping. The world’s two largest economies remain locked in a high-stakes standoff.
Despite the uncertainty, May still delivered the strongest monthly gains for both the S&P 500 and the Nasdaq since November 2023, thanks to a temporary easing in trade rhetoric and strong corporate earnings.
Still, the S&P 500 remains over 2% below its all-time high set in February.
Barclays became the latest major brokerage to raise its year-end forecast for the S&P 500, citing hopes that trade disruptions will ease and earnings growth will normalize by 2026. That’s a long-term bet—short-term pain remains the more immediate reality.
Here’s how the numbers shook out:
S&P 500: +0.44 points, or 0.01%, to close at 5,970.81
Nasdaq Composite: +61.53 points, or 0.32%, to 19,460.49
Dow Jones Industrial Average: -91.90 points, or 0.22%, to 42,427.74
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Almost 4,000 flights were cancelled across the United States on Saturday as a monster winter storm threatened to paralyse the eastern states with heavy snowfall, sleet and freezing rain, while utilities from Texas to the Midwest faced power outages.
U.S. President Donald Trump has said he will not attend the National Football League’s Super Bowl on 8 February, citing the distance to the venue as the main reason.
Russia’s Defence Ministry said its forces had taken control of the village of Starytsya in Ukraine’s Kharkiv region on Saturday, near the border town of Vovchansk. Kyiv’s military did not confirm the claim, while Russian forces also reported strikes on drone and energy sites.
Firefighters were clearing the charred ruins of a Karachi shopping mall in Pakistan on Tuesday (20 January) as they searched for people still missing after a fire that burned for nearly two days and killed at least 67 people, police said.
Iran will treat any military attack as an “all-out war,” a senior Iranian official said on Friday, as the United States moves additional naval and air assets into the Middle East amid rising tensions.
Trilateral negotiations between Ukraine, Russia and the U.S. entered a second day in Abu Dhabi on Saturday, following an initial round of talks described by officials as productive.
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Argentina's economic activity shrunk 0.3% in November compared with the same month last year, marking the first monthly contraction of 2025, data from Argentina's national statistics agency showed on Wednesday.
Wall Street closed sharply lower on Tuesday as global markets fell after U.S. President Donald Trump’s new tariff threats against Europe unsettled investors and revived fears of renewed volatility.
Global markets are rattled after U.S. President Donald Trump threatened new tariffs on eight European countries over Greenland, sending the euro to a seven-week low and raising concerns about renewed transatlantic trade tensions.
Hong Kong and Shanghai will sign a memorandum of understanding next week to establish a cross-border gold trade clearing system, a move aimed at boosting Hong Kong’s role as an international gold trading hub, Financial Secretary Paul Chan said.
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