Wall Street Wavers as Trade Uncertainty and OECD Warnings Weigh on Sentiment

Key Highlights:

• US markets edge higher, with S&P 500 up 0.22% and Nasdaq gaining 0.52%
• OECD warns of tariff-driven global slowdown, slashing US growth forecast
• Job openings rise unexpectedly in April; long-term bond yields under pressure
• CoreWeave-APLD deal, Dollar General earnings, and nuclear energy stocks in focus

US markets struggled for direction on Tuesday, with investors treading cautiously amid renewed tariff jitters, global growth concerns, and mixed economic data. The S&P 500 rose 0.22% to 5,949.72, the Dow Jones Industrial Average edged up 0.12% to 42,354.82, and the Nasdaq Composite gained 0.52% as tech stocks provided support.

The Organization for Economic Cooperation and Development (OECD) cast a shadow over the session, warning that President Trump's sweeping tariff regime risks dragging the global economy into its slowest growth since the pandemic. The OECD slashed its US growth forecast to 1.6% for 2025, citing trade barriers and policy uncertainty as key drags. The call for urgent trade deals comes as the US pushes for its "best offers" ahead of a looming deadline, with talks reportedly stalling.

China’s manufacturing sector added to the caution, as a private survey revealed the steepest contraction since 2022, underscoring the ripple effects of tariffs despite the recent US-China truce.

In Washington, the bond market is grappling with conflicting signals: a push for fiscal stimulus via tax cuts and tariff hikes on one side, and inflationary pressures on the other. The 30-year Treasury yield stood at 4.97%, as analysts warn of higher risk premiums in light of mounting deficits and reduced foreign demand.

On the corporate front, Applied Digital (NASDAQ: APLD) soared 48% on Monday after striking two 15-year lease agreements with Nvidia-backed CoreWeave, securing $7 billion in expected revenue. CoreWeave shares also gained, while nuclear energy stocks like Constellation Energy (up 11%) surged on a major 20-year power deal with Meta.

Dollar General rallied 10% on better-than-expected earnings and an upbeat annual forecast, reinforcing its reputation as a recession-resilient retailer. Meanwhile, the "Magnificent Seven" tech giants continued to dominate the S&P 500’s performance, contributing 62% of May’s gains.

With markets eyeing Friday’s May jobs report and the fate of Trump’s tariffs, the week ahead promises further volatility as investors navigate the complex interplay of policy shifts, economic data, and corporate updates.