On Monday, June 2, 2025, U.S. stock markets closed higher, defying investor concerns over renewed trade tensions between the United States and China. The Nasdaq Composite led the gains, rising by 0.7%, while the S&P 500 and Dow Jones Industrial Average also posted modest increases.
The market’s resilience came despite China’s accusations that the U.S. had undermined a recent trade agreement through export restrictions and visa revocations. In response, President Donald Trump announced an increase in steel tariffs from 25% to 50%, aiming to bolster domestic metal production. Shares of U.S. steel companies, including Cleveland-Cliffs, Steel Dynamics, and Nucor, surged following the announcement.
Investors are also anticipating a speech from Federal Reserve Chair Jerome Powell, amid speculation about potential interest rate cuts due to lower inflation and political pressure from the administration.
In corporate news, Blueprint Medicines’ stock soared by 27% after French pharmaceutical company Sanofi announced a $9.5 billion acquisition deal to expand its immunology portfolio. The acquisition is expected to enhance the commercial reach of Blueprint’s systemic mastocytosis treatment, Ayvakit, which brought in approximately $150 million in sales in the first quarter of the year.
Commodity markets saw oil and gold prices rise, while Bitcoin traded just above $104,000. The yield on 10-year Treasury notes also climbed, reflecting investor caution.
Despite the positive market performance, underlying economic indicators suggest caution. U.S. manufacturing activity contracted for the third consecutive month in May, with new orders, backlogs, production, and employment all declining, highlighting the negative impact of ongoing trade tensions.
As markets await further developments, particularly the upcoming speech from Federal Reserve Chair Powell, investors remain vigilant about the potential implications of escalating trade disputes and policy shifts on the broader economy.
