Market movement came after news broke that President Donald Trump spoke with Chinese President Xi Jinping — a conversation initiated at Trump’s request. The phone call, reported by Chinese state media, comes amid rising trade tension despite a truce agreed to in Geneva just weeks ago.
S&P 500: Up 0.26% to 5,986.35 Dow Jones Industrial Average: Increased by 0.15% to 42,489.50 Nasdaq Composite: Gained 0.35% to 19,528.70 These gains were tempered by investor caution ahead of the upcoming U.S. jobs report, which is expected to show a slowdown in hiring.
Did the Trump-Xi phone call help calm US-China trade worries?
Investors were closely watching whether this conversation could ease tensions in the ongoing trade war. Wall Street has seen this before: tough rhetoric from the White House often gives way to softer positions, a pattern traders call the “TACO” trade — short for “Trump Always Chickens Out.”
While optimism briefly lifted stocks earlier in the day, gains were lost after the call’s details failed to provide clarity on the next steps in trade negotiations. Instead of calming nerves, the market seemed uncertain about whether the relationship is improving or headed toward more tariffs.
Top Gainers
These companies experienced significant price increases, with Ryvyl Inc leading the gains at nearly 99% .
Top Losers
Helius Medical Technologies faced the steepest decline, dropping over 69% .
What economic data is worrying Wall Street now?
The US stock market today also reacted to disappointing economic data. The Department of Labor reported that jobless claims reached their highest point in eight months. In the final full week of May, more Americans filed for unemployment benefits, raising fresh concerns about the labor market’s health.
Continuing claims, a measure of long-term unemployment, remain near a four-year high. This trend suggests that even those who lost jobs earlier are struggling to find new work. It’s another sign that the US economy could be starting to feel the impact of Trump’s shifting trade policies.
How is the labor market reacting to shifting trade policy?
The spotlight is now on Friday’s release of the May jobs report — a key indicator of how the labor market is handling rising uncertainty from the evolving US-China trade relationship. Economists believe this report will give the first meaningful insight into whether hiring is slowing as businesses brace for potential tariffs and supply chain disruptions.
A weak report could fuel fears of an economic slowdown and put pressure on the Federal Reserve to cut interest rates sooner than expected.
Major Stocks to Watch:
Apple Inc (AAPL): $203.26 (+0.22%) Microsoft Corporation (MSFT): $466.79 (+0.63%) Alphabet Inc (GOOGL): $169.74 (+1.00%) Amazon.com Inc. (AMZN): $211.54 (+2.08%) Tesla Inc (TSLA): $319.38 (-3.82%) NVIDIA Corp (NVDA): $142.55 (+0.44%) Meta Platforms Inc (META): $691.08 (+0.45%) JPMorgan Chase & Co. (JPM): $262.59 (-0.62%) Bank Of America Corp. (BAC): $44.44 (+0.17%) Walmart Inc (WMT): $98.13 (-1.23%)
Are corporate earnings giving investors any comfort?
On the earnings front, Wall Street awaits quarterly results from Lululemon (LULU) and Broadcom (AVGO), both scheduled to report later Thursday. Their performances could offer a hint of how different sectors are managing consumer demand and global supply challenges.
With earnings season winding down, most major companies have already shared their financials. Investors are now shifting their focus to forward-looking guidance, particularly around global demand, costs, and how trade uncertainty could affect second-half performance.
What does this mean for investors heading into Friday?
For now, the US stock market today remains stuck in a holding pattern. Traders are balancing a complex mix of weak economic indicators, unpredictable trade diplomacy, and the hope that Friday’s jobs report doesn’t deliver more bad news.
Until more clarity emerges — either from Washington or Beijing — it’s likely that markets will continue to drift without strong direction. Investors are advised to remain cautious, closely monitor trade headlines, and watch key indicators like employment and consumer spending for further signals.
FAQs:
Q1: Why did the US stock market stay flat today?
The US stock market stayed flat due to uncertainty after a Trump-Xi phone call and weak job data.
Q2: What economic data affected the stock market today?
Unemployment claims rose sharply, hitting an 8-month high, which signaled a possible economic slowdown.
