Catenaa, Monday, June 02, 2025- US stocks fell on Monday after China hit back at US President Trump’s claim that China had violated the trade deal they arrived at in Geneva.
The Dow Jones Industrial Average fell over 0.7%, the S&P 500 declined nearly 0.6%, while the tech-heavy Nasdaq Composite ticked lower by about 0.1%.
China hit back at President Trump’s claim that it had violated the Geneva tariff truce on Monday, blaming the US instead for failing to keep up its end of the deal. The mutual finger-pointing has undermined hopes for a revival of trade talks between the two top economies and stoked lingering trade uncertainty.
“If the US insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,” the Chinese Ministry of Commerce said.
The escalation comes after Trump ratcheted up pressure on Friday with a threat to double US tariffs on imported steel and aluminium to 50% from 25%. While a federal court last week struck down significant portions of Trump’s duties, easing market fears, a higher court temporarily reinstated the duties a day later to allow legal proceedings to continue.
In US stocks, the tepid start to June follows a standout May, The S&P 500 rallied more than 6% in its best month since November 2023 and best May since 1990.
Against this backdrop, all eyes now turn to a critical slate of economic data this week — most notably the May nonfarm payrolls report due Friday, which will offer fresh clues on how trade frictions and interest rate expectations are shaping the broader US economy. May updates on US factory activity from S&P Global and ISM are on the docket on Monday.
