Dow Jones slips while S&P 500, Nasdaq gain as OECD cuts global growth outlook
U.S. stocks opened largely flat as investors weighed the latest economic growth outlook from the Organization for Economic Co-operation and Development
The Dow Jones Industrial Average was down 41 points after swinging negative at the open, while the S&P 500 was up 0.04%. Meanwhile, the Nasdaq Composite rose 0.35%. All three major indexes closed May higher after riding tariff-driven swings.
As stocks struggled amid slight risk-off sentiment, Bitcoin (BTC) was up 1.66% as bulls looked to strengthen above the $105k level. he benchmark digital asset fell to lows of $103,700 earlier in the day.
Elsewhere, oil prices also saw an uptick, while in the bond market, the 30-year and 10-year Treasury yields were down. Gold gave up some gains.
This market outlook unfolds amid OECD’s report on Tuesday, June 3.
While the Paris-based organization’s forecast coincided with stocks having weathered tariff-related volatility to close green on Monday, underlying trends suggest the global economy is heading for its weakest growth since the Covid pandemic.
In its latest report, the OECD warned that global economic growth is expected to slow from 3.3% in 2024 to 2.9% in both 2025 and 2026. For the U.S., the OECD projects that annual gross domestic product growth will decline from 2.8% in 2024 to 1.6% in 2025 and 1.5% in 2026.
“The global economy has shifted from a period of resilient growth and declining inflation to a more uncertain path,” said OECD Secretary-General Mathias Cormann. “Our latest economic outlook shows that today’s policy uncertainty is weakening trade and investment, diminishing consumer and business confidence and curbing growth prospects.”
Tariffs and continued uncertainty are likely to fuel further negativity across financial markets, with swings aligning with trade agreements or breakdown of talks.
Markets have already followed this trajectory amid U.S.-China trade tensions, and similarly during the episode when former U.S. President Donald Trump recommended, then postponed, 50% tariffs on the European Union.
