02.06.202518:16:25UTC+00Wall Street Mixed as Trade Tensions Flare, Tariffs Rise

On Monday, the United States stock markets presented a mixed performance as June trading commenced, following a strong rally in May. Renewed global trade tensions impacted investor sentiment. While the S&P 500 remained mostly unchanged and the Nasdaq increased by 0.3%, the Dow Jones Industrial Average experienced a decline of more than 100 points. This market turbulence was largely attributed to President Trump's decision to increase tariffs on imported steel and aluminum to 50%, heightening tensions with both China and the European Union. China responded by rejecting US accusations of breaching a trade truce, asserting that Washington had not fulfilled its obligations, thereby diminishing prospects for renewed trade discussions. In reaction to the tariff increases, steel stocks experienced significant gains, with companies like Nucor rising by 8.3%, Steel Dynamics by 9.6%, and Cleveland-Cliffs by 20.4%. Conversely, automakers such as Ford and General Motors saw their stocks drop by over 4%. Additionally, US manufacturing data continued to indicate a contraction. Investors are now focused on the upcoming May nonfarm payrolls report, seeking insights into the wider economic consequences of ongoing trade disputes.