U.S.Stocks Climb Amid Strong Jobs Data, Despite OECD Tariff Warnings
U.S.stocks saw a boost on Tuesday, thanks to robust jobs data.The Dow Jones climbed 0.5%, or 209 points, while the S&P 500 rose by 0.52%. The tech-focused Nasdaq led the pack with a 0.81% increase.
Positive economic news reversed earlier stock declines. The Job Openings and Labour Turnover Survey showed a surprising rise in job openings in April, reaching 7.39 million. This was despite the implementation of U.S.”Liberation Day” tariffs. Hiring rates also increased, with the number of available jobs matching the number of unemployed workers.
The strong labor market bodes well for the upcoming Bureau of Labor Statistics report on Friday. Though, the Association for Economic Cooperation and Progress (OECD) sounded a cautionary note. They lowered their global growth forecast to 2.9%, down from 3.3% last year, citing the impact of U.S. tariffs.
The OECD expects the U.S., Canada, Mexico, and China to be hit hardest. China, in particular, may suffer significantly under U.S. tariffs. The U.S.economy is projected to grow by 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 contribute to this decline.
