Traders work on the floor of the New York Stock Exchange (NYSE) at the opening bell on June 2, 2025, in New York City.
Angela Weiss | Afp | Getty Images
The S&P 500 ticked higher Tuesday, gaining for a second day and extending last month’s recovery, fueled by higher prices for other Nvidia and other semiconductor stocks and as investors anticipated details on potential U.S. trade deals.
The broad market index rose 0.3%, the Dow Jones Industrial Average gained 64 points, or about 0.2%, while the Nasdaq Composite was higher by 0.7%.
Nvidia and other chip stocks helped drive the advance. The dominant maker of artificial intelligence chips advanced more than 3%, extending Monday’s gain, while Broadcom and Micron Technology rose about 3% and 2%, respectively.
To be sure, CFRA Research’s Sam Stovall still cautions that the market might be in a trading range for a little while.
“We’re not going to get second quarter GDP data until July, we’re not going to start to get second quarter earnings data until July, and we’re also not going to be hearing more about tariffs until July,” the chief investment strategist told CNBC. “The market is going to just sort of bob and weave in the meantime until we start to get a clearer understanding, if we get one, of the outlook for earnings, GDP growth, etc.”
Tuesday’s moves followed the Organization for Economic Co-operation and Development cutting its U.S. growth outlook. The OECD now sees the U.S. economy expanding by just 1.6% in 2025, down from 2.2%.
The weaker growth outlook boosted Treasury prices, sending yields lower, as investors sought out safety. The benchmark 10-year Treasury note yield dropped 4 basis points to 4.418% after rising above 4.50% last month.
Tariffs and policy uncertainty were among the key factors cited by the OECD to explain the reductions.
Beijing recently said the U.S. was in violation of a trade truce, countering President Donald Trump’s own accusations that China wasn’t living up to the temporary trade agreement. Treasury Secretary Scott Bessent had said Sunday that Trump and President Xi Jinping would speak soon to discuss trade.
Meanwhile, the European Union criticized Trump’s intention to double steel tariffs to 50%, saying that it “undermines” negotiations with the U.S. An EU spokesperson said that the bloc was “prepared to impose countermeasures.”
The major averages posted modest gains Monday, when the S&P 500 climbed 0.4%, and the Nasdaq rose 0.7%, both rising for the third day in four. The Dow eked out a 0.1% advance but gained for a fourth straight day.
