Wall Street Indexes Decline Amid New U.S. Tariff Threats, Steel Stocks Soar

Barry Adams
02 Jun, 2025
New York City

Stocks on Wall Street declined amid worries after the U.S. president reignited trade tensions with the European Union and China. 

The S&P 500 index decreased as much as 0.8%, and the Nasdaq Composite declined as much as 0.6% in early trading after Donald Trump announced additional levies on imported steel. 

Investors were rattled after China sharply rejected the president's accusation that it violated the consensus achieved in Geneva, Switzerland, last month. 

The rising level of rhetoric signaled that the two sides were far from reaching an agreement in the near term, as negotiators raced to beat the deadline in two months. 

Trump threatened to impose an additional import tax of 50% on imported steel from June 4, prompting the European Union's reply that the move undermines the "negotiated solution."

The European market dropped on the worries that higher steel tariffs will negatively impact vehicle makers and industrial companies. 

Last week, the S&P 500 index and the Nasdaq Composite edged higher and supported the advance in May. 

In May, the S&P 500 index gained about 6%, and the Nasdaq Composite jumped more than 9%, but those gains are likely to be wiped off in June amid elevated trade tensions. 

In the week ahead, investors in the U.S. are anticipating the release of construction spending, business activity, and international trade balance updates.

The labor market updates, including non-farm payrolls and JOLT surveys, are scheduled later in the week as well.

On the earnings front, investors anticipate results from Hewlett Packard, CrowdStrike, NIO Inc., Dollar Tree, Five Below, PVH Corp., Broadcom Inc., Fastenal Co., DocuSign Inc., and Ciena Corp.

The European Central Bank is expected to announce its interest rate decision on Thursday.

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 0.4% to 5,889.22, the Nasdaq Composite edged down 0.1% to 19,086.99, and the Russell 2000 index advanced 0.1% to 2,069.12.

The yield on 2-year Treasury notes edged higher to 3.94%, 10-year Treasury notes increased to 4.44%, and 30-year Treasury bonds advanced to 4.98%.

WTI crude oil increased $3.08 to $63.86 a barrel, and natural gas prices edged higher by $0.28 to $3.73 a thermal unit.

Gold increased by $67.34 to $3,356.81 an ounce, and silver edged up by $0.96 to $33.94.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.43 to 98.90 and traded at the lowest level since April 2022.

 

U.S. Stock Movers

DraftKings and Flutter Entertainment declined after Illinois lawmakers approved a tax increase on sports betting over the weekend.  

Flutter Entertainment PLC declined 3.6% to $243.56, and DraftKings dropped 7.1% to $243.56.  

Nucor Corp soared 11.5% to $121.89, Cleveland-Cliffs Inc catapulted 28% to $7.50, and U.S. Steel Corp decreased 0.4% to $53.62.