The U.S. stock market opened lower on Monday, June 2, 2025, with all three major indices experiencing declines. The Dow Jones Industrial Average fell by 0.4%, the S&P 500 decreased by 0.3%, and the Nasdaq Composite dropped by 0.2% .
These early losses reflect a cautious start to the trading day, influenced by escalating trade tensions between the U.S. and China. China accused the U.S. of violating a recent trade agreement, citing new export controls and student visa revocations. Additionally, President Trump's decision to raise steel tariffs to 50% has further strained relations, prompting concerns over potential economic impacts .
Despite the morning downturn, the market showed resilience later in the day. Investors appeared to shrug off the escalating trade tensions, leading to a rebound in major indices. The S&P 500 and Nasdaq Composite closed higher by 0.4% and 0.7%, respectively, while the Dow Jones Industrial Average edged up by 0.1% .
This rebound was supported by gains in technology stocks, with companies like Meta Platforms, Nvidia, and Broadcom posting significant increases. Additionally, U.S. steel companies saw a surge in their stock prices following the announcement of increased tariffs on steel imports .
The day's market activity underscores the ongoing volatility driven by geopolitical developments and trade policies. Investors remain attentive to further news that could impact market dynamics in the coming days.