4:15pm: Stocks close in the green
The Nasdaq closed Monday’s session at 19,243, rising 129 points, or 0.7%, to outpace other major indexes as technology stocks extended their recent rally.
The S&P 500 also advanced, adding 24 points, or 0.4%, to finish at 5,936. The Dow Jones ended nearly unchanged, up just 35 points, or 0.01%, at 42,305.
Meanwhile, the Russell 2000, a benchmark for small-cap stocks, edged higher by 2 points, or 0.1%, to close at 2,068.
3:36pm: Proactive news headlines
atai Life Sciences (NASDAQ:ATAI, ETR:9VC) will merge with Beckley Psytech in a $390 million all-share deal, contingent on success in Beckley’s ongoing Phase 2b psychedelic therapy trial.
Liberty Star Uranium & Metals Corp. (OTCQB:LBSR) has completed SAM registration, enabling it to pursue U.S. federal contracts and grants.
Bit Digital Inc (NASDAQ:BTBT) acquired a 96-acre site in North Carolina to develop a flagship AI data center through its WhiteFiber subsidiary.
US Gold Corp (NASDAQ:USAU) will join the Russell 3000 and 2000 indexes, increasing its exposure to institutional investors.
Spanish Mountain Gold Ltd (TSX-V:SPA, OTC:SPAZF) reported extensive near-surface gold mineralization at its Phoenix Target in British Columbia.
Lancaster Resources Inc (CSE:LCR, OTCQB:LANRF) secured final CSE approval to acquire the Lake Cargelligo gold project in New South Wales, Australia.
Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF) expects stronger financial performance as its Beiseker facility ramps up to full fertilizer production.
Polarean Imaging PLC (AIM:POLX, OTC:PLLWF) received FDA approval to use its XENOVIEW lung imaging agent in children as young as six, expanding its potential patient base.
2:30pm: Oil rises on sanctions
Oil prices rose at the start of the week, despite OPEC’s announcement of a supply increase of 411,000 barrels per day starting in July. The price jump was driven by rising geopolitical tensions, including U.S. plans for harsher sanctions on Russia—potentially a 500% tariff on countries buying Russian oil—and Ukraine’s drone strikes inside Russian territory.
These developments have raised concerns about global oil supply, supporting bullish sentiment for Brent crude, even amid increased OPEC production. However, analysts caution that such geopolitical-driven price rallies may be short-lived unless tensions significantly escalate.
1:15pm: Construction spending falls
US construction spending declined 0.4% in April, marking the third consecutive monthly drop, as elevated interest rates continue to weigh on both residential and nonresidential building activity, according to Wells Fargo economists.
“The high interest rate environment is cutting into residential demand and standing in the way of new nonresidential projects getting underway,” the bank wrote in a note on Monday.
Lingering uncertainty over trade policy and its broader economic impacts also contributed to the slowdown, though some clarity on tariffs and easing fears of a sharp economic contraction may help improve the outlook for future projects.
“There is now more visibility in regard to tariffs, and concerns of an acute contraction in economic activity have lessened,” Wells Fargo noted. “That should help bolster the project pipeline in the months ahead.”
Still, any near-term recovery could be hampered by borrowing costs, which remain stubbornly high as the Federal Reserve holds off on cutting interest rates amid improving economic conditions.
“The improved outlook means the Federal Reserve will not be in a hurry to reduce the federal funds target rate,” Wells Fargo said. “Elevated financing costs should remain a constraint on activity moving forward.”
12:25pm: Markets tread water
US stocks are mixed at midday as investors navigate renewed trade tensions between the US and China and brace for key economic data later this week.
The Dow is leading losses, down 0.5%, with industrial and multinational stocks under pressure due to their exposure to trade policies. The S&P 500 is slightly lower, slipping 0.1%, while the Nasdaq is up 0.3%, lifted by continued strength in tech stocks following a solid rally in May.
Market sentiment has turned cautious after both countries exchanged fresh accusations over tariff breaches, adding uncertainty just as President Trump announced plans to double tariffs on imported steel and aluminum. Investors are now focused on Friday’s May jobs report, which is expected to offer insight into the labor market’s resilience.
Meanwhile, gold is rising as a safe-haven asset, oil is rebounding after OPEC+ maintained output levels, and the U.S. dollar is weakening amid concerns over how trade tensions may affect growth and inflation.
11:30am: Tariffs weigh on manufacturing
The latest ISM Manufacturing PMI showed continued weakness in the U.S. manufacturing sector, coming in at 48.5 in May—below both consensus expectations and Comerica's forecast of 49.5. Bill Adams, chief economist at Comerica Bank, said the data reflect mounting pressures from tariffs and high interest rates that are weighing on goods-producing sectors.
“Tariffs are a drag on business, as is the uncertainty about where tariffs will settle over the longer term,” Adams said, noting that every comment in the ISM survey referenced the negative impact of tariffs—citing reduced sales, higher costs, and supply chain disruptions.
Adams also flagged broader concerns for the manufacturing and construction sectors, pointing to recent declines in construction spending and ongoing headwinds from elevated borrowing costs. Despite these challenges, he expects the overall economy to stay afloat. “Goods-producing sectors of the economy will likely contract in 2025,” he said, “but service-providing industries...are likely to keep growing and help the economy avoid a recession.”
On inflation, Adams warned that the Fed will take note of the ISM’s price index remaining elevated, which could signal rising inflation later this year. He expects the Fed to hold interest rates steady at its June 18 meeting and maintain a cautious stance, forecasting no rate cuts through the end of 2025.
10:55am: Manufacturing slump deepens
US ISM Manufacturing PMI fell slightly to 48.5 in May, missing expectations and signaling continued contraction, while new orders and employment remained weak.
Imports dropped to their lowest level since 2009 and export orders hit their lowest since 2020, underscoring persistent demand challenges.
10:40am: Week ahead
After its strongest monthly rally since November 2023, Wall Street is shifting its focus to June, with a packed week of economic data, Federal Reserve commentary, and earnings reports ahead.
Investors are bracing for Friday’s nonfarm payrolls report, expected to show a slowdown in hiring.
Deutsche Bank forecasts a gain of 125,000 jobs, down from April’s 177,000, with the unemployment rate holding at 4.2%. “At present there are no obvious signs of a meaningful deterioration in the labor market,” Deutsche Bank analysts noted, though wage growth and hours worked will be closely watched.
The week will also bring insights from several Fed officials, including Chair Jerome Powell, who speaks Monday at a Washington conference. Markets will be listening for clues on the Fed’s policy stance ahead of the June FOMC meeting.
Read more here.
9.55am: Dow Jones importers lead decline, steelmakers rise
US stocks have opened in the red, with the Dow Jones leading the decline, down 0.7% as 3M, Merck, Johnson & Johnson, Caterpillar and P&G shares marching lower.
The S&P 500 is down 0.5% and the Nasdaq has slid 0.3% lower.
Topping the F&P leaderboard are Steel Dynamics and fellow steel producer Nuco, up 15.2% and 14.7%.
8.10am: Markets chew over Trump 'TACO trade'
US stocks are expected to start the month of June on the back foot as markets chew over whether the TACO trade (Trump Always Chickens Out) will prove the correct bet.
Dow Jones futures were down 0.2%, those for the S&P 500 were 0.35% lower and Nasdaq 100 futures were 0.5% in the red.
This follows a month that was a strong one for most financial assets, with the S&P rising 6.3% on a total return basis in what was its biggest gain in 18 months.
US Treasuries have been a key focus in the past month, with a sell-off raising yields amidst growing fears about the fiscal situation in the US and many major economies.
European markets are largely downbeat tone, having following their Asian counterparts lower, with Germany's DAX down 0.35% and the FTSE 100 flat in London.
Trade agreements are a key focus.
On one side, Friday's announcement from President Trump that he plans to double tariffs on steel and aluminium imports "does serve to push back on any hopes that he will change course in the face of the recent court ruling," said market analyst Josh Mahony at Rostro.
On the other, many in the market are "clinging to the ‘TACO trade’", said Rupert Thompson, chief economist at IBOSS asset management, "betting that Trump's tough talk – despite his back-and-forth on European tariffs and rising tensions with China – won’t ultimately result in meaningful economic harm."
Chinese stocks were lower as traders worry about "fading hopes of a trade deal" between the world’s two largest economies, said Mahony, with the Trump administration claiming that China have continued to hold back rare earth exports despite the agreement reached in Geneva.
The Chinese commerce ministry, however, insisted that they have upheld their part of the agreement, leading to fears that relations are deteriorating rather than improving.
"With around 5 weeks left until we see the reciprocal tariffs kick back in, Trumps team will be keen to start pushing trade deals across the line.
Nonetheless, markets will instead be focused on the implications of Trumps policies, with any signs of deterioration in the jobs market providing a potential incentive for the Fed to take a more proactive approach to easing given last week’s cool PCE inflation release."
Oil prices were on the rise, with WTI crude gaining over 4% to $63.4 per barrel despite an OPEC decision to raise production again.
Looking ahead this week there is a torrent of macroeconomic data, culminating in Friday’s US non-farm payroll numbers, which could shape the Federal Reserve’s next move.
Last week’s Nvidia earnings largely wraps up the Q1 earnings season, though Campbell Soup Company (NYSE:CPB) reported better earnings than expected, while saying full year EPS is now expected to be at the low end of the guidance range.