$BNB Market Pullback Update
The US stock market experienced a pullback today, June 2, 2025, with major indices declining due to escalating US-China trade tensions and rising oil prices.[1]
Causes of the Decline
The Dow Jones Industrial Average dropped about 0.7%, or roughly 170 points, while the S&P 500 slipped nearly 0.5%, and the tech-heavy Nasdaq Composite edged down by around 0.3% [2]. The main reason for the market's pullback was the spike in US-China trade tensions, with China accusing the US of violating a trade agreement and the US threatening to double tariffs on steel and aluminum imports from 25% to 50% [3].
Economic Data and Market Reaction
Investors are growing cautious as renewed trade worries cloud the market outlook at the start of June. Key economic reports, such as May's nonfarm payrolls and factory data, will guide investors on growth and inflation risks amid trade worries [4]. The US manufacturing activity contracted, with the Purchasing Managers' Index (PMI) dropping to 48.5%, signaling contraction [5].
Sector-Specific Gains
Despite the overall decline, steel industry stocks surged after the tariff hike announcement, with Cleveland-Cliffs rising over 26% and Nucor gaining nearly 11% [6].
Investor Outlook
Market participants are watching for further trade dispute developments and anticipate upcoming economic data, #MarketPullback
#TradingTypes101 his Friday [7]. The Federal Reserve Governor Christopher Waller stated that any inflation caused by tariffs will likely be short-lived, and the Fed can afford to cut interest rates in 2025 [8].
