Traders work on the floor of the New York Stock Exchange on June 3, 2025.
NYSE
The S&P 500 ticked higher Tuesday, fueled by strong gains in AI leader Nvidia, as investors anticipated details on potential U.S. trade deals.
The broad market index rose 0.6%, while the Dow Jones Industrial Average gained 247 points, or 0.6%. The Nasdaq Composite was higher by about 1%.
Nvidia, along with other chip stocks, helped drive this advance. The dominant maker of artificial intelligence chips advanced more than 3%, extending Monday’s gain and passing Microsoft in market cap for the first time since January. Meanwhile, others like Broadcom and Micron Technology rose more than 2% and more than 4%, respectively.
“The Street is seeing past this game of high stakes poker and believe Trump and Xi on the schedule to speak this week is bullish for U.S.-China relations,” said analyst Dan Ives of Wedbush Securities, adding that Nvidia is a key beneficiary of deal talks between the two countries.
To be sure, CFRA Research’s Sam Stovall still cautions that the market might be in a trading range between 5,700 and its late February high for a little while.
“We’re not going to get second quarter GDP data until July, we’re not going to start to get second quarter earnings data until July, and we’re also not going to be hearing more about tariffs until July,” the chief investment strategist told CNBC. “The market is going to just sort of bob and weave in the meantime until we start to get a clearer understanding, if we get one, of the outlook for earnings, GDP growth, etc.”
Tuesday’s moves followed the Organization for Economic Co-operation and Development cutting its U.S. growth outlook. The OECD now sees the U.S. economy expanding by just 1.6% in 2025, down from 2.2%.
Tariffs and policy uncertainty were among the key factors cited by the OECD to explain the reductions.
Beijing recently said the U.S. was in violation of a trade truce, countering President Donald Trump’s own accusations that China wasn’t living up to the temporary trade agreement. Treasury Secretary Scott Bessent had said Sunday that Trump and President Xi Jinping would speak soon to discuss trade.
Meanwhile, the European Union criticized Trump’s intention to double steel tariffs to 50%, saying that it “undermines” negotiations with the U.S. An EU spokesperson said that the bloc was “prepared to impose countermeasures.”
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