U.S. stocks rose on Tuesday as the strong jobs report outweighed the OECD warning on the effects of the trade war.
Strong jobs data has boosted U.S. stocks, reversing earlier declines. On Tuesday, the Dow Jones index rose 0.5% or 209 points, while the S&P 500 gained 0.52%. The tech-heavy Nasdaq rose the most at 0.81%.
Stocks reversed declines from due to positive economic data. The Job Openings and Labor Turnover Survey update revealed that jobs openings rose in April, with 7.39 million new jobs at the month. This was an unexpected result, especially as U.S. “Liberation Day” tariffs took effect.
At the same time, hiring rates rose as well, and the number of available jobs to unemployed workers reached parity at 1. Overall, the report shows that the labor market remains strong. It also sets the stage for the report by the Bureau of Labor Statistics, set to release on Friday.
OECD warns about tariffs effects
Earlier on Tuesday, the OECD lowered its outlook on global growth, citing the effects of U.S. tariffs. According to the Organization for Economic Cooperation and Development, the global economy will grow by 2.9%, lower than the 3.3% last year.
The slowdown will impact the U.S., Canada, Mexico and China in particular, OECD expects. These are the countries most economically tied to U.S., and its major trading partners. At the same time, China is expected to suffer particularly under U.S. tariffs.
The U.S. economy is projected to grow just 1.6% in 2025, compared to 2.8% in 2024. At the same time, the organization warned about the inflationary effects of the tariffs. However, global inflation is expected to drop from last year, from 6.2% to 3.6% in 2025.
Lower commodity prices, largely a result of a slowdown in global demand, will contribute to lower consumer inflation.
