Stock market today: Dow, S&P 500, Nasdaq rise as labor data offsets OECD's tariff warning

U.S. stocks closed higher Tuesday, with the S&P 500 up 0.7%, as positive JOLTS data showing an unexpected rise in job openings offset concerns raised by the OECD's warning about the negative economic impact of President Trump's tariffs. The OECD slashed its global growth outlook, citing the trade policy's effect on investment and confidence, projecting a significant slowdown in U.S. growth from 2.8% last year to 1.6% this year. Investors are also awaiting the May jobs report on Friday, while monitoring ongoing trade negotiations and earnings reports from companies like CrowdStrike, Asana, and Hewlett Packard Enterprise.

Analysis

U.S. equity markets exhibited upward momentum, with the S&P 500 rising 0.7%, the Dow Jones Industrial Average gaining 0.4%, and the Nasdaq Composite advancing approximately 1%, as positive domestic economic data partially overshadowed concerns about global trade disruptions. The April JOLTS report indicated an unexpected increase in U.S. job openings to 7.39 million and a concurrent rise in the hiring rate, signaling continued stability in the labor market ahead of the May jobs report. This contrasts sharply with the OECD's revised outlook, which slashed global economic growth forecasts due to the detrimental impact of President Trump's tariffs on investment and confidence. The OECD specifically projects a significant slowdown for the U.S. economy, from 2.8% growth last year to 1.6% this year and 1.5% in 2026. Evidence of trade war impact was also seen in China, where manufacturers faced their worst slump since 2022 in May, with smaller exporters particularly affected despite a supposed US-China trade truce. While earnings season is drawing to a close, upcoming reports from CrowdStrike (CRWD), Asana (ASAN), and Hewlett Packard Enterprise (HPE) will be watched, as trade negotiations with key partners appear stalled amid simmering U.S.-China tensions and impending deadlines for 'reciprocal' tariffs.

Key Decisions for Investors

• Investors should closely monitor the upcoming May U.S. jobs report and developments in trade negotiations, particularly concerning tariff deadlines, as these are significant potential market catalysts.
• Considering the OECD's forecast of a global economic slowdown and the tangible impacts of trade tariffs, a review of portfolio exposure to trade-sensitive sectors and geographies is warranted, with potential consideration for defensive positioning.
• Upcoming earnings reports from companies like CrowdStrike, Asana, and Hewlett Packard Enterprise should be analyzed for specific corporate health indicators and sector resilience in the face of macroeconomic headwinds and trade uncertainties.