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Indexes up: Dow up 0.17%, S&P 500 0.29%, Nasdaq 0.44%

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CrowdStrike ( CRWD ) falls on downbeat quarterly revenue forecast

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Wells Fargo ( WFC ) up on Fed's move to lift punitive asset cap

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GlobalFoundaries up on plans to increase investments

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

By Saeed Azhar, Kanchana Chakravarty and Sukriti Gupta

NEW YORK, June 4 (Reuters) - U.S. stocks rose modestly

on Wednesday, supported by technology shares, but some early

gains evaporated as weak data revealed the economic toll taken

by President Donald Trump's erratic trade policies.

The services sector contracted in May for the first time in

nearly a year, while businesses paid higher input prices, a

reminder that the economy was still at risk of slowing growth

and rising inflation.

"Tariff impacts are likely elevating prices paid by services

sector companies," said Jeffrey Roach, chief economist for LPL

Financial.

The ADP National Employment Report showed U.S. private

employers in May added the fewest number of workers in more than

two years. Investors await Friday's nonfarm-payrolls data for

more signs on how trade uncertainty is affecting the U.S. labor

market.

Washington doubled tariffs on imported steel and aluminum

to 50%, and Wednesday was also Trump's deadline for trading

partners to make their best offers to avoid other punishing

import levies from taking effect in early July.

Investors focused on tariff negotiations between Washington

and trading partners, with Trump and Chinese leader Xi Jinping

expected to speak sometime this week as tensions simmer between

the world's two biggest economies.

"If we can't get to an agreement on China, the tariff battle

will be a headline issue for many months to come and will have

an impact on both domestic and international economies," said

Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

May saw the biggest monthly increases for the S&P 500 index

and the tech-heavy Nasdaq since November 2023,

thanks to a softening of Trump's harsh trade stance and upbeat

earnings reports.

The S&P 500 remains more than 2% below record highs touched

in February.

Barclays joined a slew of brokerages in raising its year-end

price target for the S&P 500, pointing to easing trade

uncertainty and expectations of normalized earnings growth in

2026.

At 2:03 p.m. the Dow Jones Industrial Average rose

71.44 points, or 0.17%, to 42,591.08, the S&P 500 gained

17.09 points, or 0.29%, to 5,987.46 and the Nasdaq Composite

gained 84.47 points, or 0.44%, to 19,483.42.

Eight of the 11 major S&P 500 sub-sectors rose, led by

communication services with an almost 1.3% rise.

Shares of Hewlett Packard Enterprise ( HPE ) rose 1.1% as

demand for artificial-intelligence servers and hybrid cloud

segment helped second-quarter revenue and profit beat estimates.

GlobalFoundries ( GFS ) rose 1.5% after the chip

manufacturer announced plans to increase investments to $16

billion.

Shares of the fourth-largest U.S. bank Wells Fargo ( WFC ),

were up 0.4%, briefly hitting a three-month high, after the

Federal Reserve lifted a longstanding $1.95 trillion cap on its

assets.

Wells Fargo ( WFC ) CEO Charlie Scharf told Reuters he expects

the bank to grow in all businesses including wealth, commercial

and investment banking and credit cards, but not mortgages.

Tesla dropped 2.8%. The electric-vehicle

maker's sales dropped for the fifth straight month in big

European markets.

Shares of cybersecurity firm CrowdStrike ( CRWD ) slumped

5.5% after it forecast quarterly revenue below estimates.

Dollar Tree ( DLTR ) fell 0.9% as the discount store

operator forecast second-quarter adjusted profit could fall as

much as 50% from a year ago due to tariff-driven volatility.

Advancing issues outnumbered decliners by a 1.81-to-1 ratio

on the NYSE. There were 183 new highs and 32 new lows on the

NYSE.

On the Nasdaq, advancing issues outnumbered decliners by

a 1.4-to-1 ratio.

The S&P 500 posted 22 new 52-week highs and no new lows

while the Nasdaq Composite recorded 75 new highs and 30 new

lows.