Tech Resurgence Boosts Markets Amid Trade Tensions
U.S. stocks saw a slight rise as technology gains countered economic concerns linked to trade policy. Services sector faced contraction, and employment growth was limited, heightening fears of slow growth. Attention centers on ongoing U.S.-China tariff negotiations, with the S&P 500 nearing record highs.
On Wednesday, U.S. stocks experienced a modest increase as tech sector gains helped counterbalance economic worries exacerbated by volatile trade policies.
The services sector contracted in May, the first decline in nearly a year, raising concerns about possible stagnation as businesses dealt with rising input costs. Meanwhile, the ADP report showed low private employer hiring rates, the lowest in over two years, prompting investors to await payroll data to assess labor market health amid trade uncertainties.
Significant attention is on tariff negotiations as Washington imposed a 50% tariff on steel and aluminum imports, with discussions between President Trump and Chinese leader Xi Jinping anticipated this week. Tech stocks, notably Hewlett Packard Enterprise and GlobalFoundries, surged following positive earnings reports, while others like Tesla and Dollar Tree faced declines.
(With inputs from agencies.)
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