U.S. Stocks Surge Despite OECD Tariff Warnings: A Tale of Jobs and Global Tensions

Hold onto your hats, folks! U.S. stocks rocketed up on Tuesday, shrugging off the OECD's gloomy forecast about the trade war's impact, thanks to a sizzling jobs report that lit up Wall Street!

Yes, you heard it right! Strong jobs numbers sent U.S. stocks soaring, flipping the script on earlier dips. The Dow Jones index powered up by 0.5%, or a whopping 209 points. Not to be outdone, the S&P 500 climbed 0.52%, and the tech-heavy Nasdaq led the charge with a stellar 0.81% gain.

What turned the tide? Stellar economic data that caught everyone by surprise! The latest Job Openings and Labor Turnover Survey dropped a bombshell: job openings skyrocketed in April to 7.39 million, even as U.S. "Liberation Day" tariffs kicked in.

But wait, there's more! Hiring rates also shot up, and the ratio of available jobs to unemployed workers hit a perfect 1. The labor market's not just surviving; it's thriving! This sets the stage for Friday's Bureau of Labor Statistics report, which everyone's now eagerly awaiting.

OECD Sounds Alarm on Tariff Fallout

Earlier on Tuesday, the OECD threw cold water on the global growth party, blaming U.S. tariffs for a dip in their outlook. They're now projecting global growth at just 2.9%, down from last year's 3.3%.

The ripple effects will hit the U.S., Canada, Mexico, and especially China hard, as these nations are deeply intertwined with U.S. trade. China's in for a rough ride with those tariffs breathing down its neck.

The U.S. economy is expected to limp along at a mere 1.6% growth in 2025, down from 2.8% in 2024. The OECD also flagged the inflationary pressure from these tariffs, but there's a silver lining: global inflation is set to cool from 6.2% last year to 3.6% in 2025.

And here's why: falling commodity prices, driven by a global demand slowdown, are expected to ease consumer inflation pressures.