US markets opened cautiously on Wednesday as investors digested weaker-than-expected employment data and renewed signals of difficulty in trade negotiations with China. All three major indices showed minimal movement in early trading, underscoring a mood of uncertainty and restraint across Wall Street.
The Dow Jones Industrial Average slipped 0.05%, while the S&P 500 hovered around the flatline. The Nasdaq Composite edged down by 0.02%, reflecting muted activity in the tech-heavy index. The opening numbers came amid fresh concerns about the strength of the US labour market and lingering geopolitical risks.
Markets were particularly unsettled by the ADP private payrolls report, which revealed that only 37,000 jobs were added in May—far short of the 110,000 forecast. The figure was the lowest since early 2020 and suggested that businesses may be holding back on hiring due to growing economic uncertainties. Analysts noted that while one weak report does not make a trend, the data points to a possible cooling in the labour market just as the Federal Reserve nears a critical interest rate decision.
Among individual stocks, Hewlett Packard Enterprise led gains with a jump of over 6% after it reported strong quarterly results. Demand for artificial intelligence servers and hybrid cloud solutions helped boost revenue, reinforcing investor confidence in enterprise tech. Meanwhile, Wells Fargo shares climbed more than 2% following the removal of a long-standing Federal Reserve growth restriction, first imposed in 2018 in the wake of the bank’s misconduct scandals.
On the downside, cybersecurity firm CrowdStrike fell more than 7% after issuing guidance for the next quarter that fell short of expectations, despite posting solid results for the previous period. Dollar Tree also declined, slipping nearly 2%, as the discount retailer warned that fresh US tariffs on Chinese goods could dent second-quarter earnings.
Trade tensions again crept into investor calculations after comments from President Donald Trump, who described Chinese President Xi Jinping as “extremely difficult to make a deal with”. The statement dashed hopes of a breakthrough in trade negotiations and cast doubt on the effectiveness of the current 90-day truce in the tariff dispute. Markets remain wary of further escalations, especially with new rounds of tariffs looming.
The administration also announced that tariffs on certain steel and aluminium imports would double to 50%, a move that risks reigniting friction with key trading partners. Businesses reliant on imported materials are likely to face higher costs, which could weigh on profit margins and consumer prices in the months ahead.
Overall, the tone on Wall Street remains tentative. Investors are looking for clearer direction from forthcoming economic indicators, including Friday’s official jobs report. Until then, the market is expected to tread carefully, balancing pockets of corporate strength against the broader uncertainties of global trade and economic momentum.
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