Stock market today: Dow, S&P 500, Nasdaq rise as Nvidia jumps to highest since January

US stocks closed higher Tuesday, with the S&P 500 up 0.6% and the Dow adding roughly 0.5%, as upbeat JOLTS data showing an unexpected rise in job openings in April helped offset concerns from the OECD, which slashed its global growth outlook citing the negative impact of Trump's tariffs; Nvidia (NVDA) surpassed Microsoft (MSFT) to become the world's most valuable company, reaching a market capitalization of $3.444 trillion.

Analysis

US equity markets demonstrated resilience, with the S&P 500 advancing 0.6% and the Nasdaq Composite 0.8%, buoyed by an unexpected rise in April JOLTS job openings to 7.39 million and an increased hiring rate to 3.5%. This positive domestic labor market signal, however, contrasted sharply with concerns voiced by the OECD, which significantly reduced its global economic growth forecast, projecting a slowdown in US growth from 2.8% in the previous year to 1.6% this year and 1.5% in 2026, primarily attributing this to the adverse impacts of President Trump's tariffs on investment and confidence, alongside warnings of heightened inflationary pressures. A landmark event was Nvidia's (NVDA) market capitalization reaching $3.444 trillion, surpassing Microsoft (MSFT) at $3.441 trillion, fueled by a roughly 50% stock gain since early April on robust AI chip demand and strong financial outlook, despite losing China sales due to US export bans. Sector-wise, Energy (XLE), Technology (XLK), and Consumer Discretionary (XLY) led gains, while Real Estate (XLRE) and Consumer Staples (XLP) declined. Discount retailer Dollar General (DG) saw its stock surge following record Q1 sales and an upgraded annual forecast, indicating strength in consumer demand for value. Ford (F) reported a 16.3% sales increase in May, its best since 2019, attributed to price cuts intended to offset tariff impacts. The AI theme continued to drive specific stock movements, exemplified by Constellation Energy's (CEG) significant stock rise after securing a 20-year nuclear power agreement with Meta (META), and Applied Digital's (APLD) gains from AI data center leases. Despite macroeconomic uncertainties, Wall Street sentiment saw some uplift with Deutsche Bank raising its S&P 500 year-end target to 6,550, reflecting reduced tariff drag expectations and a resilient economy. The bond market remains caught, with rising long-term Treasury yields reflecting concerns over fiscal policy and conflicting growth and inflation signals.

Key Decisions for Investors

• Investors should acknowledge the current market strength driven by domestic data but remain vigilant regarding macroeconomic headwinds, particularly the impact of trade tariffs on global growth and corporate earnings, as highlighted by the OECD.
• Consider maintaining exposure to technology, especially AI-related stocks like Nvidia (NVDA) which continue to show strong fundamental momentum, but be mindful of concentration risks within the 'Magnificent Seven' and evaluate individual company resilience to potential trade disruptions or export bans.
• Focus on companies demonstrating pricing power or benefiting from specific consumer trends, such as discount retailers like Dollar General (DG), and selectively evaluate opportunities in sectors like energy and companies securing long-term AI infrastructure deals, while exercising caution in sectors directly impacted by trade policy uncertainty or rising interest rates.
• Monitor developments in the bond market and the trajectory of long-term yields, as sustained fiscal concerns and inflationary pressures could influence broader asset allocation strategies and the relative attractiveness of growth versus value investments.