Monday Afternoon Coffee - Markets Update - 02 June 2025 - Markets Rebound Despite Tariff Jitters; Gold Surges, Crude Rallies on Supply Concerns

The Trade Academy Team
Jun 2
3 min read

Markets Update: U.S. stocks bounced back Monday after early losses, as investors brushed off fresh tariff threats from President Donald Trump and focused on broader signs of resilience in the economy. Gold surged above $3,370, while oil rallied sharply on supply concerns out of Canada.

Global Markets Roundup: 2 Jun 2025

Stocks Gain as Energy Leads, Despite Tariff Tensions

The major indexes ended in positive territory after wavering earlier in the session, with the Nasdaq Composite leading gains:

Nasdaq Composite: +0.67%

S&P 500: +0.41%

Dow Jones Industrial Average: +0.08%

Energy stocks led the S&P 500 as wildfires in Canada’s oil-rich regions threatened output, lifting crude prices. Industrials were the only sector to decline.

Investor sentiment remained fragile after Trump announced plans late Friday to double tariffs on imported steel and aluminum. The move, coming amid legal challenges and global negotiations, added to concerns that aggressive trade actions could reignite inflation and undercut growth.

Still, hopes that recent trade deals with China and the EU might limit future tariff hikes have buoyed equities in recent weeks. Trump and Chinese President Xi Jinping are expected to speak later this week following renewed accusations that China violated previous agreements.

Gold Rallies Above $3,370 as Safe-Haven Demand Grows

Gold soared 2.5% to its highest level in over three weeks, closing above $3,370 per ounce. A 0.7% drop in the U.S. dollar DXY made the metal more attractive to foreign buyers, amplifying the rally amid rising geopolitical and economic risks.

Dollar Slides; Euro Approaches Key Resistance

The dollar fell broadly, wit EURUSD rising toward a key technical zone between 1.1406 and 1.1424. The euro briefly dipped below that range but quickly reversed, signaling strong buying pressure. Traders now eye 1.1479 as the next resistance level.

Crude Oil Surges Nearly 4% Despite OPEC+ Output Hike

Oil prices jumped as supply fears outweighed an OPEC+ agreement to raise production by 411,000 barrels per day in July. The increase was below expectations that had swirled last week.

WTI Crude (July): +$1.73 to $62.52/barrel

Brent Crude (August): +$1.67 to $64.43/barrel

Yields Edge Higher; Fed Seen Holding Steady

The 10-year U.S. Treasury yield edged up to around 4.44%. While the Federal Reserve is expected to hold rates steady in coming months, officials remain concerned that fresh tariff pressures could spur another wave of inflation.

Chicago Fed President Austan Goolsbee said Monday he believes the Fed may eventually cut rates, but only once “the dirt in the air” from tariff uncertainty clears.

Grains Mixed; Soybeans Dip on Brazil Competition

CBOT soybean futures dropped 0.7% on expectations of heavy Brazilian and Argentine export competition. In contrast, corn rose 0.3% and wheat jumped 2%, aided by favorable U.S. weather and strong early growth conditions.

Outlook

As investors await clarity on trade policy, the market remains vulnerable to rhetoric and legal wrangling over tariffs. The upcoming Trump-Xi call could provide pivotal direction, particularly for sectors most exposed to global supply chains.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team