From Yahoo Finance: 2025-06-02 17:03:00

The global markets started the new trading month cautiously due to U.S.-China trade tensions and geopolitical risks, but a late rally on Wall Street was driven by a positive U.S. growth estimate. Corporate America remains strong despite profit drops, preparing for economic challenges ahead. Market moves show rising stocks, falling dollar, and increased oil prices. Trade tensions ease slightly as Trump and Xi may speak this week.

The first trading day of June saw cautious optimism as the S&P 500 broke its losing streak, with a potential 4.6% GDP growth estimate for Q2 and hopes for a Trump-Xi talk. Despite tariff concerns, the dollar and Treasuries fell, with yield curves steepening. Gold surged nearly 3% amid economic uncertainty and geopolitical tensions.

Corporate America is well-prepared for economic headwinds despite a drop in Q1 profits. Companies are facing potential challenges from tariffs, bond yields, and ‘stagflation’, but strong profits and high margins suggest resilience. U.S. interest rates may decrease later this year, impacting the dollar and yield curves, while gold prices reach a three-week high.

Challenges mount for corporate profitability as S&P 500 earnings growth forecasts shrink. Domestic profits outpace ‘RoW’ earnings, indicating potential impacts from tariffs and global trade tensions. Market focus shifts to South Korea’s presidential election, Eurozone inflation data, and U.S. durable goods orders for potential market-moving events.

Read more: Trade tension turns to tentative hope