Stock Market Update: Dow, S&P 500, Nasdaq Rise as Nvidia Surges to Highest Level Since January
On Tuesday, the U.S. stock market experienced a broad-based rally, with key indices posting gains despite ongoing concerns about trade tensions and global economic outlooks. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all advanced, buoyed by encouraging economic data and strong performance from technology companies, notably Nvidia.
Market Performance: Gains Across Major Indexes
The S&P 500 climbed 0.6%, while the Dow Jones Industrial Average rose approximately 0.5%. The tech-heavy Nasdaq Composite also gained around 0.8%, maintaining momentum from earlier in the week despite easing slightly from its session highs towards the close. Meanwhile, smaller-cap stocks saw an even stronger boost, with the Russell 2000 index ascending about 1.5%.
This positive movement in equities came amid a complex backdrop of trade policy uncertainties and economic forecasts.
Nvidia Overtakes Microsoft as Most Valuable Company
Among the day’s standout stories was Nvidia’s ascent to the top of the global market capitalization rankings. The AI chipmaker’s valuation surged to $3.444 trillion, surpassing Microsoft’s $3.441 trillion. This milestone highlights Nvidia’s prominent role in powering advancements in artificial intelligence and computing technologies, placing it at the forefront of market leadership.
Economic Data Paints Mixed Picture
On the economic front, the U.S. Labor Department released the Job Openings and Labor Turnover Survey (JOLTS) report for April, revealing an unexpected increase in job openings to 7.39 million from 7.2 million the previous month. The hiring rate also rose, signaling continued stability in the labor market despite signs of sector-specific cooling due to tariff impacts.
This positive jobs data sets an optimistic stage ahead of the more closely watched May employment report scheduled for release on Friday.
OECD Warns of Slowing Growth Amid Trade Tensions
Despite the stock gains, the Organisation for Economic Co-operation and Development (OECD) issued a somber outlook on global economic growth during the day. It cut its growth forecasts citing ongoing trade policy disruptions, especially those related to U.S. tariffs championed by President Trump. The OECD projected U.S. growth to slow sharply to 1.6% in 2025, down from 2.8% last year, and to moderate further to 1.5% in 2026. Additionally, a private manufacturing survey indicated that China’s manufacturing sector suffered its steepest decline since 2022 in May, with tariff-related pressures continuing to dampen smaller exporters despite recent trade truce efforts.
Trade Talks and Tariff Deadlines Loom
The OECD urged countries to accelerate efforts to lower trade barriers, emphasizing the importance of seizing current opportunities for agreement. However, progress in key trade negotiations, particularly between the U.S. and China, remains uncertain. Reports surfaced that President Trump is demanding his trade partners present their “best offers” by mid-week to meet impending deadlines for "reciprocal" tariffs, heightening sensitivity around ongoing trade tensions.
Markets appear to be cautiously optimistic, digesting both the headwinds from trade policy and the resilient underlying data.
Looking Ahead: Investors will closely watch Friday’s May jobs report for further signals on the labor market amid these dynamics. Meanwhile, Nvidia’s strong performance underscores the growing investor enthusiasm surrounding artificial intelligence and technology stocks.
For now, the blend of upbeat U.S. economic indicators and advancing tech equities helped offset worries stemming from the OECD’s lowered growth forecasts, keeping major indexes on a positive trajectory into midweek trading.
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