Dow gains 214 points, markets end higher as strong labor data eases tariff concerns

U.S. stocks climbed Tuesday, buoyed by stronger-than-expected labor data and optimism around potential U.S.-China trade talks, which helped offset economic growth warnings from the OECD.
The Dow Jones Industrial Average rose 214 points, or 0.51%, while the S&P 500 gained 0.58%. The tech-heavy Nasdaq outperformed, rising 0.81%, powered by a rally in chip stocks led by Nvidia
A surprise uptick in April’s job openings, reported in the JOLTS update, reassured investors about labor market resilience even as tariff hikes take hold. Openings rose to 7.39 million, setting a positive tone ahead of Friday’s May jobs report.
Hiring rates also increased, signaling continued labor market strength despite growing economic uncertainty.
OECD’s growth forecast
The gains came despite the OECD slashing its 2025 U.S. growth forecast to 1.6% from 2.2%, citing the dampening effect of President Trump’s tariff plans on investment and confidence. Global growth was also revised lower, with trade-policy uncertainty weighing on activity.
China’s factory sector posted its worst performance since 2022, reflecting the impact of renewed trade tensions.
Markets looked past the gloom, focusing instead on signs that Trump and Chinese President Xi Jinping may speak this week. That possibility, along with indications that Trump may soften some tariff plans, helped fuel a rally in semiconductor stocks.
Nvidia jumped over 3%, reclaiming its position as the world’s most valuable company, while Broadcom and Micron gained more than 2% and 4%, respectively.
Investors are also watching developments on Trump’s tax-and-spending bill and awaiting second-quarter GDP and earnings data in July. Meanwhile, Robinhood shares rose 5.5% after closing its acquisition of crypto exchange Bitstamp. European stocks also advanced, and U.S. Treasury yields slipped.
While markets remain volatile, Tuesday’s gains reflect cautious optimism that trade tensions may cool and economic momentum can hold through summer.