Market Monitor News June 03 (Cleveland-Cliffs, Blueprint Medicines UP - First Solar DOWN)

Wall Street Climbs Despite Trade Tensions: Steel Stocks Shine, Apple Impresses

Green Close for Wall Street

U.S. stocks ended higher on Monday, June 2, 2025, despite a shaky start triggered by rising trade tensions. The Dow Jones closed up 0.1%, while the Nasdaq gained 0.7%.

Market sentiment initially dipped following new friction between the U.S. and China, but optimism returned after the White House announced that President Donald Trump plans to speak with Chinese President Xi Jinping later this week.

Tensions escalated after Trump accused China of breaking recent agreements, prompting a sharp response from Beijing. The Chinese government criticized the U.S. for discriminatory measures, such as revoking student visas, which could undermine last month’s Geneva trade deal.

Analysts believe progress will now depend heavily on direct negotiations between the two presidents.

Steel Stocks Surge on Tariff Hike News

A major driver behind Monday’s gains came from the steel sector, which rallied sharply after Trump announced plans to double steel and aluminum import tariffs to 50% during a visit to a US Steel plant.

The move aims to protect domestic producers, and investors quickly responded.

Cleveland-Cliffs (CLF | +23.16%),

Steel Dynamics (STLD | +10.27%)

Nucor (NUE | +10.10%)

all soared, benefiting from the expected increase in demand for U.S.-made steel.

Apple Gets Analyst Applause

Tech giant Apple (AAPL | +0.42%) also stood out after Bank of America analyst Wamsi Mohan reiterated a bullish outlook, calling the stock a long-term winner despite its nearly 20% drop since the start of the year.

He emphasized Apple’s strong free cash flow, low risk of earnings disappointments, and growing opportunities in artificial intelligence and new service offerings. Mohan maintained a buy rating with a $235 price target, suggesting a potential upside of 16.5%.

Conflicting Signals from U.S. Economic Data

On the macroeconomic front, the latest ISM Manufacturing Index showed continued contraction in U.S. industry, slipping from 48.7 to 48.5 in May, its third consecutive month in decline.

Meanwhile, S&P Global’s PMI offered a more optimistic view, pointing to modest growth.

Additionally, construction spending unexpectedly fell by 0.4% in April, against expectations of a slight increase.

Commodities React to Global Developments

Commodities also reflected the day’s uncertainty:

• WTI crude oil rose 2.9% to $62.52 per barrel, supported by mild OPEC+ output increases and geopolitical tensions stemming from Ukrainian drone strikes on Russian airbases.

• Gold advanced 2.7% to $3,380 per troy ounce, as investors sought safe havens.

Other Noteworthy Movers

BioNTech (BNTX | +18.05%) soared after it struck a $1.5 billion upfront collaboration deal with Bristol Myers Squibb for cancer drug development. The agreement could yield up to $7.6 billion in future milestone payments.

Blueprint Medicines (BPMC | +26.09%) jumped following news that Sanofi will acquire the immunology-focused biotech for up to $9.5 billion.

First Solar (FSLR | -5.33%) shares lost more than 5%.

Renewable energy shares remained under pressure after the Department of Energy announced last week that it would cut more than $3.7 billion in subsidies for clean energy and climate-related initiatives.

Looking Ahead

Investors will be closely watching U.S. labor market data later this week, with Friday’s nonfarm payrolls report expected to be a key event.

Additionally, quarterly earnings are due from several major names, including:

CrowdStrike (CRWD | +1.65%), Hewlett Packard Enterprise (HPE | +0.35%), Lululemon Athletica (LULU | +1.98%),

Dollar General (DG | -0.08%), Dollar Tree (DLTR | +1.09%), Heico (HEI | +0.42%)

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Next to read: Market Monitor Trends & Breadth Analysis, June 03, 2025