Market Monitor News June 04 (Dollar General, ON Semiconductor UP - Kenvue DOWN)

US Markets Rebound on Strong Job Data; Tech Stocks Shine as Dollar General Soars

A Resilient Labor Market Fuels Investor Optimism

On June 03, 2025, Wall Street ended firmly in the green as a stronger-than-expected rise in US job openings restored investor confidence in the strength of the economy.

The Dow Jones climbed 0.5%, while the S&P 500 added 0.6%. The Nasdaq Composite led with a 0.8% gain, fueled by robust performances from key tech players.

The optimism followed the release of April's job openings data, which revealed 7.4 million vacancies, well above the 7.1 million forecasted by economists and an increase from March’s 7.2 million. This report painted a picture of an unexpectedly resilient labor market, contradicting recent concerns about a slowdown driven by global trade tensions and weak manufacturing data.

Chris Zaccarelli of Northlight Asset Management remarked that the strength in job openings suggests businesses remain confident enough to expand and hire, signaling they are “looking past tariff concerns” for now.

Tech Stocks Drive Nasdaq Higher

Tech giants played a pivotal role in lifting the broader markets. Nvidia (NVDA | +2.80%) stood out after being added to Jefferies’ "Franchise Picks" list.

Analyst Blayne Curtis highlighted optimism around the company's Blackwell AI chips, which are expected to push Nvidia’s gross margin up to between 70% and 80% this year, compared to 61% in the most recent quarter.

Nvidia’s rising dominance was further validated as it reclaimed its position as the most valuable US-listed company by market capitalization at $3.45 trillion, edging past Microsoft (MSFT | +0.22%) and Apple (AAPL | +0.78%).

Other semiconductor stocks also joined the rally, with Broadcom (AVGO | +3.27%) and Advanced Micro Devices (AMD | +2.34%) posting solid gains.

Dollar General Stuns with Strong Earnings

Discount retailer Dollar General (DG | +15.85%) delivered the biggest gain among S&P 500 constituents, after reporting a stellar first quarter.

The company earned $1.78 per share on $10.44 billion in revenue, easily topping expectations of $1.47 per share and $10.28 billion in revenue. As a result, the company lifted its full-year same-store sales forecast from 1.2%-2.2% to 1.5%-2.5%.

Other Noteworthy Moves

Shares of ON Semiconductor (ON | +11.35%) surged 11% after the company’s CEO shared a positive outlook on a potential demand recovery.

Wells Fargo (WFC | +2.97% after-hours) rose in after-hours trading following news that the U.S. Federal Reserve will lift the $1.95 trillion asset cap placed on the bank in 2018. The cap was originally imposed as a result of the bank’s widespread sales practices scandal.

Hewlett Packard (HPE | +4.86% after-hours) also rose in after-hours trading following stronger-than-feared earnings and a slight upward revision to its outlook.

Shares of image-sharing platform Pinterest (PINS | +3.82%) climbed 3.82% after JPMorgan upgraded the stock from neutral to overweight.

Kenvue (KVUE | -6.17%), a consumer health company spun off from Johnson & Johnson in 2023, fell 6.2%, the biggest drop among S&P 500 stocks.

Backdrop of Global Caution

Despite the strong labor data, broader concerns about global economic growth remained. The OECD downgraded its global growth forecasts for 2025 and 2026, citing trade policy uncertainty as a key risk. US growth was revised downward from 2.2% to 1.6%.

The ongoing back-and-forth between Washington and Beijing continues to weigh on investor sentiment, though a potential phone call between Presidents Biden and Xi could help ease tensions.

Adding to the cautious tone, factory orders declined significantly in April, hinting at weakness in the industrial sector.

Meanwhile, oil prices edged up amid renewed geopolitical tensions as Iran appeared poised to reject a proposed US nuclear agreement, keeping sanctions, and oil supply restrictions, in place.

Conclusion

The rally on June 03 offered a reprieve for markets shaken by recent economic warnings. Strong job openings data and bullish tech momentum drove a broad-based rally, led by Nvidia’s surge and Dollar General’s earnings beat.

While macro risks remain, particularly around trade and manufacturing, the labor market’s resilience provided a welcome dose of stability.

Investors will now shift focus to the upcoming monthly jobs report, which may further clarify the state of the US economy.

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Next to read: ChartMill Market Monitor Trends & Breadth Analysis, June 04, 2025