Stock indexes opened June trading positively despite trade tensions. However, US stock futures are now pointing lower following the OECD’s downgrade of US and global growth forecasts due to tariff concerns and uncertainty. The Dow Jones Industrial Average and S&P 500 futures are down, while Nasdaq futures have also dipped. Bitcoin is trading higher, exceeding $105,000, and oil futures have seen an uptick. In contrast, the 10-year Treasury note yield and gold futures are on the decline.
The Organisation for Economic Co-operation and Development (OECD) significantly revised its growth projections for the US, attributing the adjustment to the challenging global outlook influenced by tariff repercussions and policy uncertainties. The OECD anticipates a drop in the US annual real gross domestic product (GDP) growth rate to 1.6% in 2025 and 1.5% in 2026 from 2.8% in 2024. This is a notable decline from the OECD’s earlier forecasts in March. Additionally, the OECD reduced global GDP growth forecasts for this year and the next.
Dollar General’s stock has surged by 11% in premarket trading after the discount retailer surpassed first-quarter expectations and raised its full-year outlook. The company reported earnings per share (EPS) of $1.78 and a 5% increase in net sales year-over-year to $10.44 billion. Analysts had projected lower figures. Dollar General has raised its full-year EPS forecast and net sales growth projection, indicating a positive outlook for the company.
Automakers like General Motors, Ford Motor, and Stellantis faced a decline in their stock prices following President Trump’s announcement of a potential doubling of US steel tariffs. Concerns over increased manufacturing costs led to a drop of around 4% in GM and Ford Motor shares and 3.6% in Stellantis shares. These companies continue to experience downward trends in premarket trading.
Palantir Technologies saw its stock reach a record high for the second consecutive trading session, driven by investor optimism surrounding the AI-powered analytics software provider. The company’s shares have doubled since early April and have seen a 75% increase since the beginning of the year. This surge aligns with reports of Palantir’s product integration into several federal government agencies, contributing to the positive market sentiment around the company.
In conclusion, the stock market is reacting to various factors influencing global economic outlook, trade tensions, and company-specific performances. Investors are closely monitoring these developments to make informed decisions in the ever-evolving financial landscape.
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