{"id":11634,"date":"2025-06-04T09:02:00","date_gmt":"2025-06-04T13:02:00","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/06\/04\/stocks-finish-higher-on-chip-stock-strength-and-healthy-us-labor-market\/"},"modified":"2025-06-04T09:02:00","modified_gmt":"2025-06-04T13:02:00","slug":"stocks-finish-higher-on-chip-stock-strength-and-healthy-us-labor-market","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/06\/04\/stocks-finish-higher-on-chip-stock-strength-and-healthy-us-labor-market\/","title":{"rendered":"Stocks Finish Higher on Chip Stock Strength and Healthy US Labor Market"},"content":{"rendered":"<div class=\"layout__region nsdq-l-grid__item syndicated-article-body\">\n<section class=\"jupiter22-c-article-body\">\n<div class=\"body\">\n<div class=\"body__content\">\n<p>The\u00a0S&#038;P 500 Index ($SPX) (SPY) Tuesday closed up +0.58%, the\u00a0Dow Jones Industrials Index ($DOWI)\u00a0(DIA) closed up +0.51%, and the\u00a0Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.79%. \u00a0June E-mini S&#038;P futures (ESM25) are up +0.58%, and June E-mini Nasdaq futures (NQM25) are up +0.81%.\u00a0<\/p>\n<p>Stock indexes on Tuesday shook off early losses and rallied, with the S&#038;P 500 posting a 3-month high, the Dow Jones Industrials posting a 2-week high, and the Nasdaq 100 posting a 3-1\/4 month high.\u00a0 Strength in chip makers on Tuesday boosted technology stocks and supported gains in the broader market.\u00a0 Stocks extended their gains on signs of a healthy US labor market after the Apr JOLTS job openings report showed an unexpected increase in job listings. \u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-0Io\"  class=\"btf-bodymidpagetwothirdswidth-1\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-0Io')) {             googletag.display('js-dfp-tag-0Io');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>     <span>Join 200K+ Subscribers: <\/span> Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.  <\/p>\n<p>\u00a0<\/p>\n<p>The upside in stocks was muted Tuesday after the OECD cut its 2025 global GDP forecast for the second time this year, citing trade barriers and uncertainty that are weighing on economic confidence.\u00a0 Also, the steeper-than-expected decline in US April factory orders was bearish for equity prices.\u00a0 In addition, the heightened trade tensions between the US and China continue to weigh on stock prices following China\u2019s Ministry of Commerce\u2019s accusation on Monday that the US had unilaterally introduced new discriminatory restrictions.\u00a0<\/p>\n<p>US Apr factory orders fell -3.7% m\/m, weaker than expectations of -3.2% m\/m and the biggest decline in 15 months.<\/p>\n<p>US Apr JOLTS job openings unexpectedly rose +191,000 to 7.391 million, showing a stronger labor market than expectations of a decline to 7.100 million.<\/p>\n<p>Comments on Tuesday from Atlanta Fed President Bostic were slightly hawkish and negative for stocks and bonds when he said he\u2019s in no rush to cut interest rates as \u201cthere\u2019s still a way to go in terms of progress on inflation.\u201d<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-rZw\"  class=\"btf-bodymidpagetwothirdswidth-2\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-rZw')) {             googletag.display('js-dfp-tag-rZw');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>The Organization for Economic Cooperation and Development (OECD) cut its global 2025 GDP forecast to +2.9% from a March forecast of +3.1%, citing the impact of tariffs and uncertainty on confidence and investment.<\/p>\n<p>Weakness in Chinese manufacturing activity is negative for global growth prospects.\u00a0 The China May Caixin manufacturing PMI unexpectedly fell -2.1 to 48.3, weaker than expectations of an increase to 50.7 and the lowest level in more than 2-1\/2 years.<\/p>\n<p>The markets are discounting the chances at 1% for a -25 bp rate cut at the next FOMC meeting on June 17-18.<\/p>\n<p>The markets this week will focus on any new trade or tariff news.\u00a0On Wednesday, the May ADP employment change is expected to climb by +110,000, and the May ISM services index is expected to rise +0.5 to 52.1.\u00a0 On Thursday, weekly initial unemployment claims are expected to fall by -5,000 to 235,000.\u00a0 On Friday, May nonfarm payrolls are expected to climb +125,000, and the May unemployment rate is expected to remain unchanged at 4.2%.\u00a0 Finally, May average hourly earnings are expected to rise +0.3% m\/m and +3.7% y\/y.\u00a0<\/p>\n<p>Overseas stock markets on Tuesday settled mixed. \u00a0The Euro Stoxx 50 closed up +0.38%. \u00a0China\u2019s Shanghai Composite closed up +0.43%. \u00a0Japan\u2019s Nikkei Stock 225 closed down -0.06%.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-FO8\"  class=\"btf-bodymidpagetwothirdswidth-3\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-FO8')) {             googletag.display('js-dfp-tag-FO8');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p><strong>Interest Rates<\/strong><\/p>\n<p>September 10-year T-notes (ZNU25) Tuesday close down -0.5 of a tick. \u00a0The 10-year T-note yield rose +1.8 bp to 4.458%. \u00a0Sep T-notes on Tuesday gave up early gains and turned lower after the US Apr JOLTS job openings unexpectedly rose, a hawkish factor for Fed policy.\u00a0 Also, hawkish comments from Atlanta Fed President Bostic weighed on T-notes when he said he\u2019s in no rush to cut interest rates.\u00a0 In addition, Tuesday\u2019s rally in the S&P 500 to a 3-month high reduced safe-haven demand for T-notes.<\/p>\n<p>\u00a0\u00a0<\/p>\n<p>T-notes on Tuesday initially moved higher on positive carryover from a rally in European government bonds due to an ECB-friendly Eurozone May CPI report.\u00a0 Also, Tuesday\u2019s action by the OECD to cut its global 2025 GDP forecast for the second time this year was supportive of T-notes.\u00a0 In addition, the slide in US Apr factory orders by the most in 15 months was supportive for T-notes.<\/p>\n<p>European government bond yields on Tuesday were mixed. \u00a0The 10-year German bund yield rebounded from a 3-1\/2 week low of 2.485% and finished up +0.1 bp to 2.525%.\u00a0 The 10-year UK gilt yield dropped to a 3-week low of 4.601% and finished down -2.9 bp to 4.638%.<\/p>\n<p>Eurozone May CPI eased to +1.9% y\/y from +2.2% y\/y in Apr, better than expectations of +2.0% y\/y and the smallest increase in 8 months.\u00a0 May core CPI eased to +2.3% y\/y from +2.7% y\/y in Apr, better than expectations of +2.4% y\/y and the smallest increase in 3-1\/3 years.<\/p>\n<p>The Eurozone Apr unemployment rate fell -0.1 and matched the record low of 6.2%, right on expectations.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-umc\"  class=\"btf-bodymidpagetwothirdswidth-4\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-umc')) {             googletag.display('js-dfp-tag-umc');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Swaps are discounting the chances at 97% for a -25 bp rate cut by the ECB at Thursday\u2019s policy meeting.<\/p>\n<p><strong>US Stock Movers<\/strong><\/p>\n<p>Strength in chip stocks supported gains in the broader market.\u00a0 ON Semiconductor Corp (ON) closed up more than +11% to lead gainers in the Nasdaq 100.\u00a0 Also, Microchip Technology (MCHP) closed up more than +6%, and Micron Technology (MU) closed up more than +4%.\u00a0 In addition, NXP Semiconductors NV (NXPI) and Broadcom (AVGO) closed up more than +3%, and Nvidia (NVDA) closed up more than +2% to lead gainers in the Dow Jones Industrials.\u00a0 Finally, Advanced Micro Devices (AMD), Applied Materials (AMAT), GlobalFoundries (GFS), ARM Holdings Plc (ARM), and Texas Instruments (TXN) closed up more than +2%.<\/p>\n<p>Dollar General (DG) closed up more than +15% to lead gainers in the S&P 500 after reporting Q1 net sales of $10.44 billion, stronger than the consensus of $10.28 billion, and raising its 2026 net sales forecast to +3.7% to +4.7% from a previous view of +3.4% to +4.4%.<\/p>\n<p>MoonLake Immunotherapeutics (MLTX) closed up more than +18% after the Financial Times reported that Merck held talks to acquire the company.\u00a0<\/p>\n<p>Ferguson Enterprises (FERG) closed up more than +17% after reporting Q3 revenue of $7.62 billion, above the consensus of $7.41 billion.\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-Rns\"  class=\"btf-bodymidpagetwothirdswidth-5\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-Rns')) {             googletag.display('js-dfp-tag-Rns');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Signet Jewelers (SIG) closed up more than +12% after reporting Q1 sales of $1.54 billion, above the consensus of $1.52 billion, and raising its 2026 adjusted EPS forecast to $7.70-$9.38 from a previous forecast of $7.31-$9.10, the midpoint above the consensus of $8.39.\u00a0<\/p>\n<p>Pinterest (PINS) closed up more than +3% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $40.<\/p>\n<p>Lululemon Athletica (LULU) closed up more than +3%6after Evercore ISI raised its price target on the stock to $400 from $320.\u00a0<\/p>\n<p>Real Estate Investment Trust companies (REITs) retreated Tuesday.\u00a0Mid-America Apartment Communities (MAA) closed down more than -2%.\u00a0 Also, Welltower (WELL), Healthpeak Properties (DOC), \u00a0AvalonBay Communities (AVB), Equity Residential (EQR), and Essex Property Trust (ESS) closed down more than -1%.<\/p>\n<p>Kenvue (KVUE) closed down more than -5% to lead losers in the S&P 500 after CEO Mongon warned that seasonal demand is behind last year and the company\u2019s expectations.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-BXE\"  class=\"btf-bodymidpagetwothirdswidth-6\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-BXE')) {             googletag.display('js-dfp-tag-BXE');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>EchoStar (SATS) closed down more than -11% after deciding not to make a $183 million cash interest payment due June 2 in light of uncertainty raised by an FCC review.<\/p>\n<p><strong>Earnings Reports (6\/4\/2025)<\/strong><\/p>\n<p>Dollar Tree Inc (DLTR), Five Below Inc (FIVE), MongoDB Inc (MDB), PVH Corp (PVH), Thor Industries Inc (THO).<\/p>\n<p><i>     On the date of publication,      Rich Asplund              did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy          here. <\/i><\/p>\n<p>\u00a0<\/p>\n<p> More news from Barchart <\/p>\n<ul>\n<li>S&P Futures Gain With Focus on U.S. ADP Jobs Report and Fed Speak<\/li>\n<li>Stock Index Futures Muted as OECD Cuts U.S. Growth Outlook, JOLTs Report and Fed Speak in Focus<\/li>\n<li>Why Overall Consumer Confidence Is Critical to the Markets You Follow<\/li>\n<li>Stocks Set to Open Lower as Trade Tensions Flare, U.S. Jobs Data and Powell Speech Awaited<\/li>\n<\/ul>\n<p class=\"body__disclaimer\">The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p>        <script type=\"text\/javascript\">   \/\/ add oddAd class to every odd instance of body .ads__inline for different placeholder styles   let articleAds = document.querySelectorAll('.ads__inline');   for (let i = 0, len = articleAds.length; i < len; i++) {     \/\/ Do the below only if the curent count is less than 12     if ((i < 12) &#038;&#038; (i % 2 === 0)) {       articleAds[i].className += ' oddAd';     }   } <\/script>                                               <\/p>\n<div class=\"jupiter22-c-tags jupiter22-c-tags-default\">\n<h3 class=\"jupiter22-c-tags-title\">         Tags       <\/h3>\n<div class=\"jupiter22-c-tags-container\">Stocks<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0S&#038;P 500 Index ($SPX) (SPY) Tuesday closed up +0.58%, the\u00a0Dow Jones Industrials Index ($DOWI)\u00a0(DIA) closed up +0.51%, and the\u00a0Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.79%. \u00a0June E-mini S&#038;P futures (ESM25) are up +0.58%, and June E-mini Nasdaq futures (NQM25) are up +0.81%.\u00a0 Stock indexes on Tuesday shook off early losses and rallied, with the 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