US Stock mid-session: Nasdaq leads gains amid mixed economic signals

US Stock mid-session: Nasdaq leads gains amid mixed economic signals

The Nasdaq Composite continued to outperform in mid-session trading on Tuesday, climbing 0.8% as technology stocks showed renewed strength to kick off June on a positive note. The Dow Jones and S&P 500 also moved higher, rising 0.39% and 0.53%, respectively, supported by solid sector performance and cautious optimism among investors.

Leading the charge, Nvidia surged over 3%, while Broadcom added more than 2%, nearing record highs. The tech sector, alongside energy stocks, was among the best performers within the S&P 500, reflecting growing investor appetite for growth amid ongoing economic uncertainty. Meanwhile, the US dollar gained ground, reflecting safe-haven demand.

However, broader market sentiment remains cautious. Economic data continues to reflect the ripple effects of global trade tensions. A private report indicated a sharp decline in Chinese manufacturing activity in May, compounding weak US factory data released earlier this week, where factory orders fell 3.7% in April, missing forecasts.

Adding to concerns, the Organization for Economic Cooperation and Development (OECD) downgraded its global growth outlook, highlighting trade policy uncertainty as a key drag. The OECD singled out the US economy as vulnerable, urging policymakers to pursue trade agreements to ease tensions.

On the trade front, negotiations between Washington and Beijing remain fraught, with recent accusations exchanged over alleged breaches of the trade truce. A scheduled call between Presidents Trump and Xi Jinping is expected soon, but no confirmation has come from Beijing.

Retailer Dollar General stood out with a sharp gain after raising its earnings outlook, citing resilience amid rising prices fueled by tariffs—a trend that boosts the appeal of discount retailers.

In fixed income, US Treasury yields ticked higher, while overseas, Japanese bond prices rose following a strong 10-year auction. European markets closed with modest gains, buoyed by inflation data showing the eurozone’s consumer prices growing below 2% in May.

Investors also keep a close watch on the US Senate’s deliberations over President Trump’s tax and spending package, which passed narrowly in the House last month but faces an uncertain path ahead.

European stocks close slightly higher amid easing inflation and ECB rate cut expectations

European markets managed to finish Tuesday with modest gains, as the Stoxx 600 edged up by 0.02%, reflecting cautious optimism ahead of key policy decisions. Germany’s DAX led the advance, rising 0.64%, followed by France’s CAC 40 which gained 0.33%, while the U.K.’s FTSE 100 inched up 0.13%.

The euro weakened by 0.56% against the U.S. dollar after inflation data showed the eurozone’s consumer prices rose just 1.9% in May—below the European Central Bank’s 2% target. This softer inflation reading has strengthened market expectations of a 25-basis-point ECB rate cut at the upcoming policy meeting, with some economists anticipating a potential follow-up easing in June.

Looking ahead, investors will watch closely as European Commissioner for Trade Maros Sefcovic and U.S. Trade Representative Jamieson Greer meet in Paris tomorrow to discuss ongoing trade tensions. Meanwhile, the scheduled implementation of a 50% tariff increase on U.S. steel imports, announced by President Trump, is set to challenge the European steel sector and add inflationary pressure domestically.

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