US Stocks Flat as OECD Slashes Growth Forecast, Trade Tensions Loom

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: David Dee Delgado/Getty Image

U.S. stocks opened little changed Tuesday after the Organization for Economic Co-operation and Development (OECD) downgraded its U.S. growth outlook and urged governments to finalize trade agreements to avoid further economic deceleration.

The OECD now expects the U.S. economy to grow just 1.6% in 2025, down from a previous estimate of 2.2%, citing heightened global trade tensions and policy uncertainty.

At 8:36 A.M. ET, the Dow Jones Industrial Average edged up 0.02% (9.32 points) to 42,314.80, while the S&P 500 slipped 0.08% (4.48 points) to 5,931.46, and the Nasdaq Composite declined 0.06% (11.36 points) to 19,231.26. The benchmark 10-year Treasury yield ticked down to 4.422%.

Despite the muted open, investors were cautiously optimistic after signs emerged that President Donald Trump may speak with Chinese President Xi Jinping this week, raising hopes for a possible easing of U.S.-China trade frictions.

“It appears the market took solace in the White House signaling that President Trump and Xi Jinping would talk this week,” said Mike O’Rourke, Chief Market Strategist at JonesTrading.

Economic Data in Focus

Investors are awaiting the April Job Openings and Labor Turnover Survey (JOLTS) and factory orders, both due at 10 A.M. ET, for fresh insight into labor market resilience and industrial demand.

Corporate Highlights

• Signet Jewelers topped Q1 earnings estimates and raised its annual profit outlook. Shares surged 9.91%.

• Ford Motor Co. posted a 16% year-over-year sales increase in May, marking three consecutive years of double-digit growth. Shares were slightly down.

• Constellation Energy slipped after Meta Platforms signed a 20-year nuclear energy deal for its Illinois data centers.

• EchoStar tumbled over 4% after saying it won’t pay around $183 million in cash interest due to regulatory uncertainty involving Dish Network.

• Chinese EV maker Nio missed earnings expectations, dragging its shares down more than 4%.

• Dollar General raised its full-year sales outlook, betting tariffs will remain unchanged through August. Shares jumped over 13%.

• Credo Technology shares soared nearly 25% after beating fiscal Q4 estimates.

• Parsons Corp. cut its revenue forecast due to U.S. State Department restructuring but still saw shares rise nearly 2%.

• TSMC shares dipped modestly after CEO C.C. Wei downplayed tariff impacts, forecasting record-high revenue and earnings.

Earnings from Hewlett Packard Enterprise and CrowdStrike are due after the bell.

Strategy, formerly MicroStrategy, announced plans to raise $250 million via a new class of perpetual preferred stock to fund further Bitcoin purchases. Bitcoin was last down 0.25% at $105,624.90.