After recovering from initial weakness to end the previous session mostly higher, stocks may show a lack of direction in early trading on Tuesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down by just 0.1 percent.

Traders may be reluctant to make significant moves as they await further developments on the trade front a month ahead of the expiration of President Donald Trump’s 90-day tariff pause.

While tensions between the U.S. and China have seemingly risen in recent days, traders appear to remain generally optimistic about trade deals being reached.

“The 90-day pause on tariffs has just over a month before expiration, meaning the pressure is on countries to do deals with the Trump administration,” said Russ Mould, investment director at AJ Bell.

He added, “Reports suggest that Trump wants best offers on trade negotiations by Wednesday, perhaps to avoid any last-minute rush or stalemate situations.”

Meanwhile, the Organization for Economic Co-operation and Development has lowered its global growth forecast for 2025 to 2.9 percent from 3.1 percent.

The Paris-based firm said the outlook across the globe has become challenging due to rising trade barriers and policy uncertainty, which is weighing on consumer confidence and blocking investments.

Shortly after the start of trading, the Labor Department is due to release its report on job openings in the month of April. Job openings are expected to decrease to 7.100 million in April after falling to 7.192 million in March.

The Commerce Department is also scheduled to release its report on new orders for manufactured goods in the month of April. Factory orders are expected to tumble by 3.0 percent in April after surging by 3.4 percent in March.

Stocks came under pressure early in the session on Monday but showed a notable turnaround over the course of the trading day. The major averages climbed well off their lows of the session and into positive territory.

The major averages saw further upside going into the end of the day, reaching new highs for the session. The Nasdaq climbed 128.85 points or 0.7 percent at 19,242.61, the S&P 500 rose 24.25 points or 0.4 percent to 5,935.94 and the Dow inched up 35.41 points or 0.1 percent to 42,305.38.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index edged down by 0.1 percent, while China’s Shanghai Composite Index rose by 0.4 percent.

The major European markets have also turned mixed on the day. While the French CAC 40 Index is down by 0.2 percent, the German DAX Index is up by 0.1 percent and the U.K.’s FTSE 100 Index is up by 0.2 percent.

In commodities trading, crude oil futures are jumping $0.82 to $63.34 a barrel after surging $1.73 to $62.52 a barrel on Monday. Meanwhile, after spiking $81.70 to $3,370.60 an ounce in the previous session, gold futures are falling $19.10 to $3,351.50 an ounce.

On the currency front, the U.S. dollar is trading at 143.32 yen compared to the 142.71 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1383 compared to yesterday’s $1.1441.




U.S. Stocks May Lack Direction In Early Trading

2025-06-03 12:48:19

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