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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UN Secretary-General Antonio Guterres has issued a stark warning over the humanitarian situation in the Gaza Strip.
Uzbek President Shavkat Mirziyoyev’s official visit to Tokyo represents more than a strengthening of bilateral relations; it is a strategic step that broadens the economic and diplomatic horizons of the region.
The foreign ministers of Cambodia and Thailand have told Chinese Foreign Minister Wang Yi that they are willing to pursue a ceasefire, as tensions flared along parts of the two countries’ shared border.
Ukraine has welcomed the European Union’s decision to provide €90 billion in support over the next two years, calling it a vital lifeline even as the bloc failed to reach agreement on using frozen Russian assets to finance the aid.
European Union foreign policy chief Kaja Kallas has warned that attempts to reach a peace agreement in Ukraine are being undermined by Russia’s continued refusal to engage meaningfully in negotiations.
Chinese Foreign Minister Wang Yi has held a phone conversation with his Venezuelan counterpart Yvan Gil at the latter’s request.
Belarusian President Alexander Lukashenko has confirmed that Russian-made Oreshnik missile systems have been deployed on Belarusian territory and placed on combat alert.
The European Union has postponed signing its long-awaited free trade agreement with the Mercosur bloc until January, after failing to secure sufficient backing from member states, according to media reports.
Warner Bros Discovery’s board rejected Paramount Skydance’s $108.4 billion hostile bid on Wednesday (17 December), citing insufficient financing guarantees.
Ford Motor Company said on Monday it will take a $19.5 billion writedown and scrap several electric vehicle (EV) models, marking a major retreat from its battery-powered ambitions amid declining EV demand and changes under the Trump administration.
Iran has rolled out changes to how fuel is priced at the pump. The move is aimed at managing demand without triggering public anger.
U.S. stock markets closed lower at the end of the week, as investors continued to rotate out of technology shares, putting pressure on major indices.
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75% following its two-day policy meeting, according to an official statement issued on Wednesday, 10 December.
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