Markets Tread Water as OECD Warns of Gloomy Global Growth

Stocks Open Flat, Bitcoin Battles to Stay Above $105K

U.S. stocks kicked off the day with a shrug, as investors grappled with the latest economic growth outlook from the Organization for Economic Co-operation and Development. The vibe? Cautious.

The Dow Jones Industrial Average stumbled out of the gate, down 41 points after flirting with negative territory right from the start. The S&P 500 edged up just 0.04%, while the Nasdaq Composite showed a bit more spunk with a 0.35% rise. All three major indexes wrapped up May in the green, riding out some wild tariff-driven rollercoasters.

As stocks fought through a touch of risk-off jitters, Bitcoin (BTC) was charging ahead, up 1.66% as the bulls tried to muscle their way past the $105k mark. Earlier in the day, the crypto king had dipped to a low of $103,700, but it wasn't giving up without a fight.

Meanwhile, oil prices got a little boost, while in the bond market, the 30-year and 10-year Treasury yields took a hit. Gold, on the other hand, couldn't hold onto its earlier gains.

This market drama played out against the backdrop of the OECD's report dropping on Tuesday, June 3.

OECD Sounds Alarm on Global Economic Slowdown

The Paris-based organization's forecast landed just as stocks were riding out the storm of tariff-related volatility to close in the green on Monday. But beneath the surface, the trends paint a picture of the global economy teetering on the edge of its weakest growth since the Covid days.

In their latest report, the OECD threw down a warning: global economic growth is set to nosedive from 3.3% in 2024 to a measly 2.9% in both 2025 and 2026. For the U.S., the OECD predicts annual GDP growth will plummet from 2.8% in 2024 to 1.6% in 2025 and a dismal 1.5% in 2026.

"The global economy has gone from a time of solid growth and cooling inflation to a murky, uncertain road ahead," declared OECD Secretary-General Mathias Cormann. "Our latest economic outlook shows that all this policy uncertainty is kneecapping trade and investment, eroding consumer and business confidence, and putting the brakes on growth prospects."

Tariffs and the ongoing uncertainty are like fuel for the fire of negativity spreading across financial markets, with the market swings syncing up with trade agreements or the breakdown of talks.

We've seen this movie before with the U.S.-China trade tensions, and again when former President Donald Trump floated, then backed off from, 50% tariffs on the European Union. Buckle up, folks, because it looks like we're in for another wild ride.