Day Traders Diary

6/4/25

The major averages closed mixed with more concerns about trade policy uncertainty could be weighing on the U.S. economy. The Dow Jones Industrial Average fell 90 points or 0.22%. The S&P 500 inched up 44 cents to 5970. The Nasdaq Composite rose 61 points or 0.32%.

A report from payrolls processing firm ADP showed that payrolls increased only 37,000 for the month, less than the downwardly revised 60,000 in April and below the consensus forecast of 110,000 that economists polled by Dow Jones were expecting. Hiring is now at its lowest level in more than two years, raising concerns trade policy uncertainty that could weighing on the U.S. economy.

The 2-year yield dropped more than 9 basis points to 3.86%, while the 10-year Treasury yield fell more than 10 basis points to 4.35%. The 30-year long bond yield fell more than 10 basis points to 4.88%.

Now investors turn to Friday’s all-important government nonfarm payrolls report, which economists currently expect to show an increase of 125,000 jobs for May, according to a Dow Jones survey.

Even with the weak economic data, investors seem somewhat confident stocks have turned a corner on tariffs, especially after a series of reversals from Trump convinced traders the White House is mainly wielding high levies as a negotiating tool. China remains a sticking points for tariffs as President Trump admits a deal with Chinese President Xi Jinping has been extremely hard.

On the commodity front, oil was lower by a percent. Gold was higher, but bitcoin fell 1.5%.

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