U.S.Stocks Climb Despite OECD Tariff Concerns
U.S.stocks saw a boost on Tuesday, thanks to a strong jobs report.The dow Jones climbed 0.5%, or 209 points, while the S&P 500 rose 0.52%.The tech-focused Nasdaq led the pack with a 0.81% increase.
Positive economic data reversed earlier stock declines. The Job Openings and Labor Turnover Survey showed that job openings surged in April, reaching 7.39 million. This was a surprise, especially with U.S.tariffs taking effect. Hiring rates also increased, and the number of jobs matched the number of unemployed workers.
The strong labor market bodes well for the upcoming bureau of labor Statistics report on Friday. however, the OECD warned about the global impact of U.S. tariffs. The organization lowered its global growth forecast to 2.9%, down from 3.3% last year.
The slowdown will hit the U.S., Canada, Mexico, and China hard. Thes countries are closely tied to U.S. trade. China, in particular, is expected to suffer under U.S. tariffs. The U.S. economy is projected to grow just 1.6% in 2025, compared to 2.8% in 2024.
While tariffs may cause inflation, global inflation is expected to drop from 6.2% to 3.6% in 2025. Lower commodity prices,due to reduced global demand,will help keep consumer inflation in check.
