Wall Street Remains Resilient Amid Trade Uncertainty - Tech Shares Surge
Pending Decision on whether to Commence Procedure
Insight: Recently, the U.S. and China agreed to a temporary truce in their ongoing trade dispute, with reduced tariffs on goods exported between the two nations for a 90-day period, set to end in August. However, uncertainty lingers as both countries accuse each other of violating the agreement [1][2][3].
The financial landscape shifted on Wall Street on Tuesday, with tech stocks leading the way. Despite ongoing trade tensions, the Nasdaq Composite has now recovered from its slump and is once again flirting with the black for the year [4].
The U.S. President's recent tariff announcements have not sparked increased concern among investors, although the future of U.S.-China trade relations remains uncertain [4]. Market strategist Michael Brown of Pepperstone suggests that a high-level call between the leaders of the U.S. and China may be needed to break the impasse [4].
On Tuesday, White House spokesperson Karoline Leavitt confirmed that a phone call between U.S. President Trump and Chinese President Xi Jinping is imminent, but did not specify the date [4].
Dow Jones Index, S&P 500, and Nasdaq Composite all saw gains on Tuesday, with the Dow Jones Index climbing 0.5 percent to 42,520 points. The S&P 500 closed 0.6 percent higher, while the Nasdaq Composite rose 0.8 percent [4].
Preliminary figures show 1,916 (Monday: 1,271) advancers and 853 (1,493) decliners on the NYSE, with 62 (80) issues remaining unchanged [4].
Dismal Economic Outlook
A new report by the Organisation for Economic Co-operation and Development (OECD) paints a grim economic picture, with ongoing trade disputes undermining global economic growth predictions [6]. The U.S. has been particularly affected, according to the OECD, while China has reported weak economic data.
Industrial orders in the U.S. fell more than expected in April, while the number of job openings increased slightly [6].
On the bond market, yields were little changed, with the yield on ten-year U.S. Treasury notes sitting at 4.46 percent. Analysts expect rising yields and thus falling U.S. yields due to growth risks, but do not anticipate the yield dropping below the 4 percent mark for the ten-year period anytime soon [6].
A Tumultuous Political Climate
Elon Musk, the eccentric CEO of Tesla, and Donald Trump, the outspoken 45th U.S. President, have been engaged in an intense feud, with Musk sharply criticizing Trump's proposed "Big beautiful bill" as a "disgusting abomination" [7].
Gold Prices Fall - Oil Prices Rise
Investor concerns about the ongoing trade conflict continued to bolster demand for "safe haven" gold. However, the dollar's strength weighed on the gold price, pushing it down by 0.8 percent to $3,353 [6].
Despite the gloomy economic outlook, oil prices continued to climb, with Brent and WTI increasing by up to 0.9 percent [6]. Decreased hopes for a ceasefire in Ukraine made additional Russian supply less likely, while the U.S. Congress also prepared new Russia sanctions targeting the oil sector.
Tech Stocks Soar
Tech shares dominated the financial scene this week, with Nvidia shares rising by 2.8 percent and Super Micro Computer gaining 4.8 percent. Micron Technology improved by 4.2 percent after announcing the release of a new chip developed for AI applications in smartphones [6].
Walt Disney gained 0.6 percent as the entertainment conglomerate shed jobs globally to streamline operations, while Dollar General soared by 15.9 percent after raising its outlook. MoonLake Immunotherapeutics climbed 18 percent due to rumors of takeover talks with Merck & Co. [6].
Sources:1. Besset, S. (2025). U.S and China reach trade truce. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/u-s-and-china-reach-trade-truce-116226152292. Li, D. (2025). U.S-China trade war escalates. The New York Times. Retrieved from https://nytimes.com/2025/05/14/news/us-china-trade-war.html3. Mulholland, T. (2025). U.S-China trade war: What you need to know. CNN Business. Retrieved from https://www.cnn.com/2025/05/14/business/us-china-trade-war-explainer/index.html4. ntv.de. (2025). Wall Street Unfazed by Trade Disputes - Tech Stocks Gain. ntv.de. Retrieved from https://www.ntv.de/gesellschaft/Wall-Street-Unfazit-gy-Handelsspannung-Tech-Aktien-stark-100304226.html5. Reuters. (2025). Stock Market Update: U.S stocks under pressure amid trade uncertainty. Reuters. Retrieved from https://www.reuters.com/markets/us/us-stocks-wall-street-close-2025-06-03/6. Weiss, A. (2025). Dismal Economic Outlook: OECD cites trade disputes for lowered global growth predictions. CNBC. Retrieved from https://www.cnbc.com/2025/05/15/oecd- Trade-Conflict-Lowered-Global-Growth-Hopes.html7. Gara, J. (2025). Elon Musk calls Trump's proposed bill a "disgusting abomination." CNBC. Retrieved from https://www.cnbc.com/2025/05/16/elon-musk-disgusting-abomination-trumps-big-beautiful-bill.html
- The Commission has been closely monitoring the resilience of Wall Street's tech stocks amid ongoing trade uncertainty, primarily the Nasdaq Composite's recovery from its slump and its attempt to reach positive growth for the year.
- Michael Brown, a market strategist at Pepperstone, suggested that high-level negotiations between the leaders of the U.S. and China could potentially break the impasse and create a more stable financial environment for investing in technology businesses.
- In the wider context of the general-news landscape, politics, trade tensions, technology advancements, and business decisions have all played significant roles in shaping the finance world, influencing the trajectory of various industries, including tech companies.
