US market opens flat as growth worries and trade tensions weigh on sentiment

US market opens flat as growth worries and trade tensions weigh on sentiment

U.S. stocks opened little changed on Tuesday, as investors assessed fresh concerns over economic growth and awaited clarity on the global trade front.

The S&P 500 edged down 0.1% shortly after the open, while the Dow Jones Industrial Average slipped around 20 points, or 0.1%. The Nasdaq Composite managed a slight gain of 0.1%, continuing its cautious uptrend from Monday.

The subdued start to the session comes after the OECD trimmed its U.S. growth forecast for 2024 to 1.6%, down from 2.2%, citing weakening momentum and lingering trade uncertainty. Treasury yields also moved lower in early trade, with the 10-year yield down 4 basis points to 4.418%, reflecting a risk-off tone.

Trade tensions remain in focus after China pushed back against U.S. accusations of breaching a temporary trade deal, casting doubt over the trajectory of ongoing negotiations. The European Union also warned it may retaliate if the U.S. moves ahead with plans to double steel tariffs.

Despite the cautious mood, technical analysts like Renaissance Macro’s Jeff deGraaf see seasonal tailwinds ahead. “This is not a time to lighten up on positions, just from the calendar’s perspective,” he said, noting that early summer has historically delivered strong market returns.

Tuesday’s open follows modest gains in the previous session, with the S&P 500 and Nasdaq up 0.4% and 0.7%, respectively, and the Dow inching up 0.1%.