Midday Market Roundup for Wednesday, June 4, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Wednesday, June 4, 2025:

1. Global Stocks Hit Record Highs on Tech Rally and Trade Optimism

Global equity markets surged today, largely due to the ongoing US-China trade negotiations. The tech sector, in particular, saw a significant boost, with Nvidia’s market cap surpassing Microsoft's for the first time since January. Other chipmakers like Broadcom and Micron also experienced substantial gains. The MSCI All-Country World Index is now up nearly 6% year-to-date. In Asia, South Korea’s Kospi led regional gains after the opposition’s presidential victory, jumping to a ten-month high. Japan’s Nikkei and Australia’s S&P/ASX 200 also rose, supported by robust tech sentiment and hopes for further economic recovery. Investors are closely monitoring the potential US tariff agreements and a scheduled call between President Trump and China’s President Xi Jinping, which could significantly impact the next phase of global trade policy (CNBC, Reuters, WSJ).

2. U.S. Stock Market Steady Despite Weak Jobs Data

U.S. stocks opened little changed after two days of substantial gains, with the Dow, S&P 500, and Nasdaq all hovering near recent highs. The rally has been driven by optimism that the worst of the tariff impacts may be behind the market following a federal court’s move to invalidate some of President Trump’s tariffs and signals from the administration that tariffs are being used as a bargaining tool. However, the latest ADP report showed private employers added just 37,000 jobs in May, well below expectations and marking a slowdown from April. The leisure and hospitality sector experienced the most significant job gains, while other areas saw mixed results. Analysts are closely watching Friday’s official jobs report for any signs that tariffs are weighing on the labor market (CNBC, US News & World Report).

3. Dollar Slides, Oil and Gold Mixed as Markets Await US Tariff Moves

The US dollar index, a key player in the global market, remained near six-week lows, with the euro and yen both strengthening as traders prepared for higher US duties on steel and aluminum. Oil prices softened slightly after recent gains, with Brent crude futures around $65.50 per barrel and US West Texas Intermediate at $63.35. Gold prices edged higher, up 28% for the year, as investors sought safe havens amid ongoing tariffs and geopolitical uncertainty. The dollar’s weakness is attributed to both trade policy concerns and expectations for lower interest rates in Europe. Meanwhile, global bond yields have retreated, and the euro briefly touched $1.14 against the dollar (Reuters, CNBC).

4. OECD Cuts Global Growth Outlook; Central Banks Remain in Focus

The OECD revised its global growth forecast downward to 2.9% for both 2025 and 2026, citing the ongoing impact of US tariffs and persistent trade tensions. The group warned that further escalation of protectionist measures could pose additional risks to the world economy. In South Korea, inflation slowed to 1.9% in May, its lowest since December, following rate cuts by the Bank of Korea to counteract the effects of tariffs. Investors are also closely monitoring the European Central Bank’s upcoming rate decision and the Federal Reserve’s approach to interest rates. These decisions are of paramount importance as policymakers navigate a complex economic environment (Reuters, CNBC).

Sources:
CNBC: https://www.cnbc.com/2025/06/04/asia-markets-today-june-4-2025.html
CNBC: https://www.cnbc.com/2025/06/03/stock-market-today-live-updates.html
US News & World Report: https://www.usnews.com/news/economy/articles/2025-06-04/adp-employers-add-a-paltry-37-000-jobs-in-may
Reuters: https://www.reuters.com/business/finance/global-markets-view-usa-2025-06-04/
Reuters: https://www.reuters.com/world/china/global-markets-wrapup-1-2025-06-04/
WSJ: https://www.wsj.com/livecoverage/stock-market-today-trump-tariffs-trade-war-06-03-2025

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