Investing

Stock Market Live June 2: Trade Troubles Send S&P 500 (VOO) Lower

Industrial worker in protective gear pours molten metal at steel foundry. Manufacturing process in heavy industry with furnace. Skilled laborer handles high-temperature metallurgy, safety action.
Artie Medvedev / Shutterstock.com

Key Points

  • President Trump late Friday announced he will double global tariffs on steel imports to 50%.

  • Wall Street is upgrading U.S. steel stocks and their shares are soaring, but the broader stock market still looks weak.

  • Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor)

Live Updates

Live Coverage Has Ended

Wrapping Up

The Vanguard S&P 500 ETF closed up 0.6% at 544.91 Monday.

Time to Get Trucking

Goldman Sachs downgraded S&P 500 component companies Union Pacific (NYSE: UNP), Norfolk Southern (NYSE: NSC), and CSX (Nasdaq: CSX) — all to “neutral” — this morning.

More a valuation play than a tariffs-risk decision, Goldman sees transportation sector companies getting beaten up, but trucking companies taking it on the chin more than railroads. The banker says its strategy is to “buy when fundamentals are as pressured as they can be,” and for this reason, is switching support away from rail and towards trucking stocks instead.

Bond Market Unfazed

Despite continuing trade turmoil and a disappointing ISM reading, bond investors don’t seem too perturbed Monday. The U.S. Treasury auctioned off $144 billion in new three- and six-month Treasury notes today. $76 billion in 3-month Treasuries sold at a 4.25% yield, slightly better than last week’s 4.255%, but bids were down markedly, from 3.18x the amount of bonds on offer to 2.68x.

$68 billion in 6-month bonds sold at 4.150%, an improvement over last week’s 4.158%, and demand here was stronger, 3.13x the amount of debt on offer.

US Economy contracts

U.S. ISM (Institute for Supply Management) showed a third straight month of decline for the U.S. in May. The index, which broadly describes whether manufacturing activity in the U.S. is expanding (over 50) or contracting (under 50) read 48.5 in May, 48.7 in April, and 49 in March.

As recently as February, the index showed an expanding manufacturing economy with a 50.3 reading. May’s reading, in contrast, was the weakest since November 2024.

The Vanguard S&P 500 ETF is still down 0.3% in morning trading.

This article will be updated throughout the day, so check back often for more daily updates.

The Vanguard S&P 500 ETF (NYSEMKT: VOO) looks likely to open lower on Monday, and is trading down 0.3% in the premarket. Last week President Trump accused China of having “TOTALLY VIOLATED ITS AGREEMENT WITH US.” And in a game of geopolitical he said, she said, China now is replying by blaming the U.S. for reneging on commitments it made.

A rumored call between President Trump and Chinese President Xi Jinping later this week could set matters to right. But for the time being, it seems trade negotiations with China are on the rocks.

And not just China.

Over the weekend, President Trump announced he will double tariffs on global steel imports to 50%. Investors in S&P 500 component companies Nucor (NYSE: NUE) and Steel Dynamics (Nasdaq: STLD) like that news a lot, and shares are up about 12% each in the premarket. But a spokesperson for the European Union responded that “this decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.”

Analyst Calls

BMO Capital responded to the steel tariffs by quickly upgrading Nucor stock to outperform. The analyst notes that Nucor looks especially “well-positioned to benefit from the announced doubling of steel tariffs due to its relatively lower utilization rates.” BMO also points out that Nucor stock looks cheap at only 5.5x 2026 estimated EV/EBITDA.

Earnings

S&P 500 component company The Campbell’s Company (Nasdaq: CPB) reported better than expected sales and earnings this morning, and guided higher for the rest of the year. Campbell’s is up less than 1% premarket.

Science Applications International (Nasdaq: SAIC) on the other hand reported mixed earnings this morning, with sales barely meeting analyst forecasts and earnings missing. Earnings guidance was also light, and SAIC stock is down more than 6% premarket.

Are You Ahead, or Behind on Retirement? (sponsor)

If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention. Many people have worked their whole lives preparing to retire without ever knowing the answer to the most important question: am I ahead, or behind on my goals?

Don’t make the same mistake. It’s an easy question to answer. A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With Zoe Financial’s free matching tool, you can connect with trusted financial advisors in minutes. 

Why wait? Click here to get started today!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.