Stock Market Today: Dow, S&P 500, Nasdaq Rise as Nvidia Surges to Highest Since January
By Amalya Dubrovsky, Karen Friar, and Allie Canal | Updated June 3, 2025
U.S. stock markets closed higher on Tuesday, supported by robust economic data despite ongoing concerns about the potential economic impact of President Trump’s tariff policies. The major indexes all edged upward, led by a significant rally in technology stocks, as Nvidia soared to its highest market valuation since January.
Market Performance Overview
The S&P 500 climbed 0.6%, marking a strong finish driven by broad-based gains across sectors. The Dow Jones Industrial Average added approximately 0.5%, while the tech-heavy Nasdaq Composite rose nearly 0.8%, even after pulling back slightly from session highs. Meanwhile, smaller companies benefited from the positive tone, with the Russell 2000 index jumping about 1.5%.
Nvidia Takes the Crown as the Most Valuable Company
In a standout development Tuesday, Nvidia surpassed Microsoft to become the world’s most valuable company. The artificial intelligence chipmaker’s market capitalization surged to $3.444 trillion, narrowly overtaking Microsoft’s $3.441 trillion valuation. This milestone underscores Nvidia’s growing prominence in the AI and semiconductor sectors, as the company rides a wave of interest in advanced computing technologies.
Labor Market Shows Resilience Amid Tariffs
The U.S. Department of Labor released an update on job openings that surprised analysts by showing an increase to 7.39 million in April, up from 7.2 million the previous month. The hiring rate also ticked higher, indicating stability in the labor market despite the uncertainties created by tariff hikes. These figures set the stage for the forthcoming May jobs report, which will be critical for assessing the strength of the economy.
Although the overall job market remains steady, some sectors, especially information technology, are experiencing slower hiring and lower quit rates, suggesting that labor market cooling is unevenly distributed.
OECD Lowers Global Growth Outlook
While the U.S. market showed strength, the Organisation for Economic Co-operation and Development (OECD) downgraded its forecast for global economic growth, highlighting the adverse effects of the trade policies implemented by the Trump administration. The OECD projects U.S. economic growth will slow sharply from 2.8% last year to 1.6% in 2025 and 1.5% in 2026. The agency emphasized that heightened trade barriers have hurt investment and overall confidence, urging countries to expedite negotiations to reduce tariffs. Reports indicate President Trump is pressing trade partners to submit their “best offers” by Wednesday, ahead of looming reciprocal tariff deadlines. However, progress in talks remains slow amid persistent tensions between the U.S. and China.
Impact on China’s Manufacturing
Reflecting broader trade-related pressures, China’s manufacturing sector experienced its worst downturn since 2022 in May, with activity contracting sharply. Despite a trade truce between the U.S. and China, smaller Chinese exporters are still feeling the pinch from tariff hikes, according to private surveys.
Looking Ahead
Market watchers will be closely monitoring the release of May’s employment data set for Friday, which will provide further clarity on the labor market’s trajectory and its impact on economic growth. Meanwhile, ongoing trade negotiations and tariff decisions remain key risk factors for global markets.
Summary: On June 3, 2025, U.S. stock markets rallied with the Dow, S&P 500, and Nasdaq all posting gains led by a surge in Nvidia’s stock. The AI chipmaker overtook Microsoft as the world’s most valuable company with a $3.444 trillion market capitalization. Positive labor market reports helped offset concerns from the OECD’s downgrade of global growth forecasts amid ongoing trade tensions and tariff impacts, particularly on China’s manufacturing sector. Investors now await May jobs data and further developments in U.S. trade policy.
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