Stock Market Today: US Stocks Rise as Strong Labor Data Counterbalance Tariff Concerns

US stocks edged up on Tuesday, strengthened by stronger-than-expected labor data, which helped offset the chaos surrounding the economic toll of President Trump’s tariffs. The S&P 500 (GSPC) rose by 0.58%, while the Dow Jones Industrial Average (DJI) gained 0.44%. The Nasdaq Composite (IXIC) led the way with a 0.89% increase, driven by tech stocks and positive sentiment at the start of the week. Small-cap stocks also performed well, with the Russell 2000 (RUT) up over 1%.

This market momentum comes amid reports showing that job openings unexpectedly rose in April, signaling a strong labor market despite ongoing trade tensions. The positive labor data helped ease concerns raised earlier by the OECD, which warned about the potential economic damage from tariff hikes.

Market Movers:

• Dollar General (DG) +14.31%: Dollar General’s stock surged by over 14% after the discount retailer reported better-than-expected quarterly sales and raised its annual sales forecast. The company saw strong demand for everyday essentials, bolstering investor confidence in its resilience amid economic uncertainty.
• Constellation Energy (CEG)+5.39%: Constellation Energy rose by 5.39% after securing a significant 20-year nuclear power purchase agreement with Meta. This deal, which begins in 2027, will help Meta power its AI operations with clean energy, ensuring the continued operation of Constellation’s Clinton nuclear facility.
• Pinterest (PINS) +4.26%: Pinterest shares gained nearly 4% after JPMorgan upgraded its rating to "Outperform" from "Neutral" and raised its price target. The upgrade was driven by improving user growth and advances in Pinterest’s advertising technology, which has helped attract more revenue.
• Applied Digital (APLD) +8%: Applied Digital’s stock jumped 8% in pre-market trading, continuing the momentum from Monday, as the company secured long-term lease agreements with Nvidia-backed CoreWeave for AI data centers. This partnership is a significant step in expanding its footprint in the AI and data center sectors.

Economic Data Boosts Market Sentiment

The strong performance in the job market, as shown by the latest JOLTS report, has helped sooth concerns and reassure that the economy remains resilient despite ongoing trade disruptions. The report showed that job openings rose to 7.39 million in April, beating economists' expectations. The rise in job openings suggests that businesses are still hiring and that labor market conditions are steady, providing a solid foundation for continued economic growth.

This data sets the stage for Friday’s highly anticipated May jobs report, which will provide more insight into the strength of the labor market and its implications for the broader economy. Investors will be closely watching for any signs that the labor market is cooling or if the economy remains on solid footing.

OECD's Economic Outlook and Trade Warnings

On the flip side, the OECD issued a gloomy economic forecast, slashing its growth outlook for the global economy, largely due to the effects of President Trump’s trade policies. The OECD warned that trade tensions and tariff hikes are hurting investment and confidence, particularly in the US, where growth is expected to slow sharply from 2.8% in 2024 to just 1.6% in 2025. The organization also pointed to weak manufacturing data in China, highlighting the global ripple effect of the US-China trade conflict.

Despite these concerns, the market has shown resilience, helped by the positive jobs report and expectations that trade talks will continue, albeit slowly. While the tariffs remain a significant issue, the market has largely shrugged off the OECD’s warning for now, with investors focusing more on the positive labor data and corporate earnings reports.

Looking Ahead

The market’s focus is now on the May jobs report, set to be released later this week. This report will be key in determining whether the labor market remains strong enough to support economic growth despite ongoing trade tensions. If the report shows continued strength, it could provide a boost to investor sentiment and support the recent rally in stocks. At the same time, the market will continue to monitor developments in trade talks. President Trump is reportedly pushing for "best offers" from trade partners ahead of key deadlines, but the US-China trade relationship remains fraught with tension. The outcome of these discussions, along with any new tariff announcements, could add further volatility to the market in the coming weeks.