The New York Stock Exchange rose on June 2 (local time) amid expectations for trade negotiations.
U.S. President Donald Trump warned that he would raise tariffs on steel and aluminum to 50%, but investors interpreted this as a negotiating pressure tactic and maintained an optimistic outlook.
On June 2, the S&P 500 index closed at 5,935.94, up 24.25 points (0.41%) from the previous trading day. The Nasdaq Composite index rose 128.85 points (0.67%) to record 19,242.61, fueled by strong performance in technology stocks, including Nvidia.
The Dow Jones Industrial Average closed at 42,305.48, up 35.41 points (0.08%).
On the previous day, President Trump announced at a U.S. Steel plant in Pennsylvania that he would raise tariffs on steel and aluminum from 25% to 50%. This measure, set to take effect on June 4, is expected to impact major exporting countries, including Korea.
However, stock market investors view this as a pressure tactic to finalize negotiations in light of recent tariff threats and pressures on China, the European Union (EU), and the steel industry.
According to Reuters, the U.S. administration is urging countries to present their 'best proposals' in trade negotiations. This is interpreted as a move to expedite negotiations ahead of the deadline, which closes in five weeks.
On this day, U.S. steel stocks, which stand to benefit from the tariff increase, surged. Cleveland-Cliffs surged 23%, and Nucor and Steel Dynamics also saw gains.
In contrast, automotive stocks fell due to concerns about rising steel expenses. Ford dropped 3.9%, and General Motors also experienced a similar decrease.
In the technology sector, Nvidia rose 1.7%, leading to the Nasdaq's gains. Meta jumped 3.6% and showed strong performance.
Nvidia announced that its revenue for the first quarter exceeded expectations, recording $44.1 billion, surpassing the forecast of $43.31 billion. In particular, data center revenue rose 73% year-over-year, reaching $39 billion.
Jensen Huang, CEO of Nvidia, emphasized that "AI will surpass previous platform transformations like the internet, mobile, and cloud" as he highlighted the rapid growth of AI.
Tesla fell 1.1% due to reported declines in monthly sales in Portugal, Denmark, and Sweden.
The announced May ISM Manufacturing Purchasing Managers' Index (PMI) recorded 48.5, falling short of market expectations of 49.3. This marks three consecutive months of contraction and suggests that supply chain disruptions due to tariffs are materializing.
ISM warned that "due to tariffs, supplier deliveries are delayed, and there is a possibility of shortages in some products."
Lorie Logan, president of the Dallas Federal Reserve Bank, stated, "The labor market is stable, and inflation is slightly above the target, so the Fed is monitoring a broad range of data."
Market experts noted that "after the S&P 500 recorded its highest monthly gain in 18 months in May, the upward momentum continues into June," adding that "expectations for a resolution in the negotiations outweigh concerns about trade conflicts."