Dow Jones Ends Its Winning Streak; Nasdaq Makes Gains

The Dow Jones dropped on Wednesday as the Nasdaq climbed thanks to a tech rally that may continue through the rest of the week.

Written by: Timothy St. John • Thursday, June 5, 2025 • 2 min read

• Last updated: Thursday, June 5, 2025

Quick overview

The Dow Jones dropped 0.22% on Wednesday, while the Nasdaq gained 0.32%.
Private sector payrolls increased by only 37,000, significantly below the expected 110,000, indicating a slowdown in job growth.
Despite fears over tariffs and a potential economic stagnation, the stock market has remained relatively strong this week.
President Trump is calling for interest rate cuts, but the Federal Reserve has not yet responded to these requests.

For four days, the Dow Jones ended each day high, but that was not the case on Wednesday as it dropped 0.22%. However, the Nasdaq gained 0.32% before trading closed.

The Dow Jones is down today as the Nasdaq climbs.

The S&P 500 closed off trading for Wednesday basically flat, while the Nasdaq climbed and the Dow Jones dropped. Tech stocks are rallying now, but all stocks could be affected by tariff fears very soon as Trump is still battling with China.

The stock market is set to end the week slightly high, though, having ended most days this week in the green. Despite rising fear over tariffs and the ongoing trade war, the stock market is relatively healthy and surprisingly strong.

Payroll Report Shows Little Change

On Wednesday, private sector payrolls showed little sign of change. They increased only 37,000, which is far below the expected 110,000 that the Dow Jones put out ahead of the report. This is the lowest these payroll numbers have been in about two years, showing a decline in new jobs.

It appears that the economy is slowing and that news has President Trump calling for interest rate cuts. However, the Federal Reserve refuses to budge for now on its planned cuts. Trump posted on social media that Jerome Powell should lower the interest rate. Multiple reports show slowdown in the economy, including the Beige Book that the Federal Reserve released periodically.

If the economy is not growing, then it is stagnating and is at risk of contracting. Stagnation is defined as a period where the gross domestic product is 3% or less. The recent reports could be bad news for the stock market, and we may see lower numbers next week. It would be an especially bad time for new tariffs to go into effect or news to emerge that the trade war is escalating.

As stagnation increases, the risk for unemployment, homelessness, inequality in income, and reduced competition in business all escalate. The fear of stagnation and recession could drive the stock market down over the next week, even with a continuing tech rally.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.