Traders work on the floor of the New York Stock Exchange on June 2, 2025.
NYSE
Stock futures slipped on Tuesday morning after the major averages began June's trading on a positive note.
S&P 500 futures slipped 0.5%, and Dow Jones Industrial Average futures lost 208 points, or 0.49%. Futures linked to the Nasdaq 100 ticked down 0.47%.
In the regular session, the S&P 500 climbed 0.41%. The Nasdaq Composite advanced 0.67%, and the Dow added 35.41 points, or 0.08%.
Stocks ended the day higher despite rising tensions between China and the U.S., with Beijing countering President Donald Trump's accusations that it had violated a temporary trade agreement. Investors had grown hopeful that the two countries could work out a trade deal, but this latest development points to negotiations taking a turn for the worse.
Meanwhile, the European Union criticized Trump's intention to double steel tariffs to 50%, saying that such a move "undermines" its own negotiations with the U.S. An EU spokesperson said that the bloc was "prepared to impose countermeasures."
But despite volatility continuing to persist at elevated levels, Jeff deGraaf, head of technical research at Renaissance Macro, is optimistic on the stock market's short-term prospects.
"The next six weeks are some of the best six-week periods, historically, really rivaling only what we see in the fourth quarter," he said on CNBC's "Closing Bell." "So this is not a time to lighten up on positions, just from the calendar's perspective."
Dollar General, Signet Jewelers and Nio are set to report earnings Tuesday before the bell. That morning, traders will also watch out for readings on April's jobs openings, as well as durable goods and factory orders.
Asia-Pacific markets trade mixed as investors assess dismal China factory activity
Asia-Pacific markets traded mixed Tuesday after China's manufacturing activity in May shrank at the fastest pace since September 2022, a private survey showed.
The Caixin/S&P Global manufacturing purchasing managers' index came in at 48.3, missing Reuters' median estimate of 50.6 and dropping sharply from 50.4 in April, as a sharper decline in new export orders highlighted the impact of prohibitive U.S. tariffs.
Hong Kong's Hang Seng Index led gains in the Asia-Pacific region, ending the day 1.53% higher at 23,512.49 while Mainland China's CSI 300 added 0.31% in choppy trade to close at 3,852.01.
Over in Japan, the Nikkei 225 benchmark pared gains to end the day flat at 37,446.81, while the broader Topix index fell 0.22% to 2,771.11.
Australia's S&P/ASX 200 benchmark advanced 0.63% to end the day at 8,466.70, after briefly hitting a near four-month high earlier in the session.
The country's seasonally adjusted current account balance for the first quarter of 2025 came in at a deficit of 14.7 billion Australian dollars ($9.53 billion), exceeding the AU$13.1 billion deficit forecast by economists polled by Reuters, but an improvement from the AU$16.3 billion deficit in the previous quarter's revised reading.
Meanwhile, India's benchmark Nifty 50 moved down 0.64%, while the BSE Sensex lost 0.88% as at 1.33 p.m. Indian Standard Time.
South Korean markets were closed for polling day.
— Amala Balakrishner
U.S. small cap stocks unlikely to outperform large caps, no matter what, Capital Economics says
Even if concerns that a U.S. economic slowdown will turn into a recession turn out to be unfounded, small cap stocks in the U.S. are unlikely to outperform larger companies, according to Capital Economics chief markets economist John Higgins.
Small cap stocks haven't rebounded as much as large cap indexes since the market bottom in early April, as shown in equal-weighted indexes that give the same importance to each stock, regardless of their market value, Higgins said. What's more, small cap underperformance has only been a U.S. phenomenon, not a global one.
Even fading worries about the U.S. economy are unlikely to drive small caps higher relative to large caps, Capital Economics says.
"We suspect the underperformance will continue as enthusiasm for AI grows again. That view is informed by the experience of the dotcom era: the underperformance of [small cap] equities then only ended in mid-1999, the year before the bubble burst," the researcher wrote.
— Scott Schnipper
Big cybersecurity ETFs close at records
The Amplify Cybersecurity ETF (HACK) and the First Trust NASDAQ Cybersecurity ETF (CIBR) over the past five days
Both ETFs also touched fresh 52-week highs on Monday.
Names lifting the ETFs included CrowdStrike, up about 1.7%; Rubrik, up 4.6%; and Zscaler, up 6.3%.
–Darla Mercado, Gina Francolla
Stocks making the biggest moves after the bell: EchoStar, Credo Technology and more
These are the stocks moving the most in extended-hours trading:
EchoStar — The telecommunications stock popped 5% after EchoStar disclosed that it would not make around $183 million in cash interest payments on a series of Dish's notes. EchoStar said that this non-payment was made in light of recent uncertainty raised by the Federal Communications Commission.
Pegasystems — Shares added 2% after the software firm raised its full-year earnings guidance to $3.94 per share, ex-items, versus its prior guidance of $3.10 and FactSet's estimate of $3.40. Pegasystems also updated its full-year revenue guidance to $1.7 billion, up from its previous forecast of $1.6 billion and FactSet's $1.62 billion estimate.
Credo Technology — The data infrastructure stock soared 13% after reporting fiscal fourth-quarter non-GAAP earnings of 35 cents per share, exceeding the 27 cents per share analysts polled by FactSet had expected. Credo's $170 million revenue also beat the estimated $159.6 million.
— Lisa Kailai Han
English (US) ·