Trade Turmoil: U.S. Stocks Rally Amidst Economic Uncertainty

On Wednesday, U.S. stocks saw a moderate rise, buoyed by technology shares, although early gains tempered following the release of weak economic data attributed to the unpredictable trade policies of President Donald Trump. The services sector faced contraction in May for the first time in nearly a year, as businesses grappled with rising input costs.

Market observers marked Wednesday as a critical day in trade policy, with Washington escalating tariffs on steel and aluminum imports to 50%. It also served as President Trump's deadline for trading partners to propose offers avoiding further tariffs set to commence in early July. Investors closely watched negotiations between the U.S. and China, anticipating talks between Trump and Chinese President Xi Jinping.

Despite uncertainties, the S&P 500 and Nasdaq indices made significant monthly gains, driven by softened trade tensions and positive earnings reports. The Dow Jones, S&P 500, and Nasdaq all posted gains, with technology shares leading the charge. However, some stocks like Tesla and CrowdStrike faced declines driven by regional sales drops and underwhelming forecasts, respectively.

(With inputs from agencies.)