US stocks opened in green on Wednesday, extending gains to a third session, as they shrugged off US private payrolls decreasing in May, followed by US President Donald Trump’s steel and aluminum tariffs coming into effect.
S&P 500 was up 0.24% to 5,984.47. The tech-heavy Nasdaq index gained 0.29% to 19,455.37.
The Dow Jones Industrial Average rose 0.27% to 42,634.65.
Hewlett-Packard Enterprise and Wells Fargo were among the top gainers in the S&P 500.
Nvidia, Amazon, and Apple also posted gains as the markets opened.
Slowing private jobs
The ADP National Employment Report for US private jobs shows that jobs added in May were slower than in the previous month.
According to the report, private payrolls increased by only 37,000 jobs in May compared to 60,000 in April, which was revised downwards.
This was lower than Dow Jones’ forecast of 110,000 and was the slowest increase in more than two years since March 2023.
The report comes two days before the more comprehensive nonfarm payrolls report from the Bureau of Labor Statistics.
Dow Jones survey predicts a 125,000 increase in jobs from the BLS report.
Following the report, Trump posted scathing criticism against US Federal Reserve Chair Jerome Powell.
ADP NUMBER OUT!!! “Too Late” Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!, Trump wrote in a Truth Social post.
President Donald Trump’s executive order, signed Tuesday night and taking effect Wednesday, doubled tariffs on steel and aluminum imports from 25% to 50%, with only the UK exempted.
This move rekindled fears of trade wars and their potential impact on global supply chains and consumer prices.
Stock movers
Hewlett-Packard Enterprise (HPE) was among the top movers with a 2% gain following market open.
The stock gained after the company’s sales and profit topped analyst estimates. Furthermore, the data storage and networking services provider raised its profit outlook, as it expects to take a smaller blowback from tariffs than previously expected.
HPE said most of its products comply with the U.S.-Mexico-Canada free trade deal.
Wells Fargo also popped 2.8% after the US Federal Reserve removed an asset cap.
The cap, set at $1.95 trillion, had been in place since 2018 following the company’s fake-accounts scandal that drew widespread criticism and regulatory action.
Dollar Tree plunged 7% after the company said its earnings would decline between 45% and 50% in the current quarter, due in part to cost pressures from tariffs.
This was above the analysts’ estimate of a 1.8% decline.
Thor Industries jumped 5% after it reported better-than-expected earnings for the third fiscal quarter and reaffirmed full-year guidance.
Thor earned $2.53 per share on $2.89 billion, above FactSet’s analyst’s expectations of $1.79 per share and $2.61 billion.
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