The New York Stock Exchange started mixed on the 3rd (local time) as investors monitored the U.S.-China trade conflict. The Organisation for Economic Co-operation and Development (OECD) warned that President Donald Trump's trade policies have pushed the global economy into a downturn, highlighting concerns about slowing growth.
On this day, the three major indices on the New York Stock Exchange (NYSE) showed slight declines. The Dow Jones Industrial Average recorded 42,318.78, up 13.30 points (0.03%) from the previous session, as of 9:40 a.m. (Eastern time). The Standard and Poor's (S&P) 500 index was up 0.48 points (0.01%) at 5,935.46. The technology-heavy Nasdaq index was trading up 11.32 points (0.06%) at 19,253.93.
The OECD projected that the global economic growth rate will slow from 3.3% in 2024 to 2.9% this year. In particular, the U.S. growth rate is expected to drop significantly from 2.8% to 1.6%. This is lower than the forecast made in March.
President Trump and Chinese President Xi Jinping are reportedly likely to converse later this week. Earlier, President Donald Trump claimed that China had violated the trade agreement. In response, the Chinese government countered that the violator of the agreement is the United States.
Ivan Fineces, Chief Investment Officer (CIO) of Tigris Financial Partners, said to Bloomberg, "The recent mutual accusations between the U.S. and China have weakened the Geneva trade agreement, and trade uncertainty continues to act as a major variable in the market."