NYSE starts mixed as it awaits employment data

No response from China on 'possible US-China leadership call'

OECD lowers US and global economic growth outlook

The US stock market, which had rebounded the previous day on hopes of progress in US-China trade talks, started mixed on the 3rd (local time) as there was no significant progress in trade negotiations. The lack of response from China regarding a call between Trump and Xi Jinping, and the Organisation for Economic Co-operation and Development (OECD) lowering its outlook for the US and global economy, had an impact.

At 10 a.m. Eastern Standard Time, the S&P 500 index was fluctuating around the previous day's level, while the Dow Jones Industrial Average dipped by 0.1%. The Nasdaq rose by 0.3% as some major tech stocks gained, with NVIDIA climbing 2.4% and Tesla rising 1.4%.

As investors sought safe-haven assets, Treasury yields declined. The benchmark 10-year Treasury yield fell by 3 basis points (1bp=0.01%), reaching 4.42%. The Bloomberg Dollar Spot Index increased by 0.4%.

Constellation Energy gained 5.5% after Meta Platforms agreed to a long-term purchase of electricity produced at an Illinois nuclear power plant from Constellation Energy. Dollar General, a discount retailer, surged 12% after slightly raising its annual performance outlook. Joby Aviation climbed 13% after reports that it was pursuing a $1 billion deal to sell up to 200 air taxis to a major Saudi Arabian investor.

The OECD's forecast that, due to the effects of the trade war, US economic growth will slow from 2.8% last year to 1.6% this year, and that global economic growth will also decline from 3.3% to 2.9% over the same period, had a negative impact on market sentiment.

The White House had indicated the possibility of a Trump-Xi phone call the previous day, but China had not responded as of this day. Additionally, the European Union (EU) criticized President Trump's plan to double steel tariffs to 50%. An EU spokesperson stated, "The EU is ready to take countermeasures."

Despite volatility remaining high, Jeff DeGraaf, head of technical research at Renaissance Macro, was optimistic about the short-term outlook for the stock market. In an interview with CNBC, he stated, "The next six weeks are historically among the best six-week periods."

Tom Essaye of Sevens Report mentioned in a note to clients, "Today is likely to be a relatively quiet day for the market as investors digest the large May rebound, but if negative news emerges, there is a risk of profit-taking."

Jeongah Kim, Correspondent kja@hankyung.com