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Indexes up: Dow 0.20%, S&P 500 0.29%, Nasdaq 0.31%

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Wells Fargo ( WFC ) shares rise after Fed ends growth freeze

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CrowdStrike ( CRWD ) falls on downbeat quarterly revenue forecast

(Updates after markets open)

By Kanchana Chakravarty and Sukriti Gupta

June 4 (Reuters) - U.S. stocks edged higher on

Wednesday, as strength in technology shares offset declines

driven by weak economic data that deepened concerns about the

impact of the Trump administration's erratic trade policies.

The U.S. services sector contracted for the first time in

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

a reminder that the economy was still at risk of experiencing a

period of very slow growth and high inflation.

The ADP National Employment Report showed U.S. private

employers added the fewest number of workers in more than two

years in May. Investors are awaiting Friday's nonfarm-payrolls

data for more signs on how trade uncertainty is affecting the

U.S. labor market.

"I think you get very short term volatility from the ADP

number, but I don't think that it means that much until we see

the payrolls number," said Larry Tentarelli, chief technical

strategist at Blue Chip Daily Trend Report.

Washington doubled tariffs on imported steel and aluminum

to 50% on Wednesday, the same day by which President Donald

Trump wanted trading partners to make their best offers to avoid

other punishing import levies from taking effect in early July.

Investor focus is squarely on tariff negotiations between

Washington and its 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.

May was the best month 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 less than 3% away from its record highs

touched in February.

Barclays joined a slew of other 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 10:36 a.m. ET, the Dow Jones Industrial Average

rose 88.09 points, or 0.20%, to 42,605.07, the S&P 500

gained 17.36 points, or 0.29%, to 5,987.73 and the Nasdaq

Composite gained 58.41 points, or 0.31%, to 19,459.09.

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

communication services with a 1.2% rise, while

information technology stocks gained 0.4%.

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

demand for the company's artificial-intelligence servers and

hybrid cloud segment helped it beat estimates for second-quarter

revenue and profit.

GlobalFoundries ( GFS ) rose 2.2% after the chip

manufacturer announced plans to increase its investments to $16

billion.

Tesla dropped 3.8%. The electric-vehicle maker's

sales dropped for the fifth straight month in big European

markets.

Wells Fargo ( WFC ) shares rose 1.2% after the U.S. Federal

Reserve removed a $1.95 trillion asset cap imposed in 2018

following years of missteps.

Shares of cybersecurity firm CrowdStrike ( CRWD ) slumped

4.7% after it forecast quarterly revenue below estimates.

Dollar Tree ( DLTR ) fell 10.2% after the discount store

operator forecast second-quarter adjusted profit would be as

much as 50% lower than a year ago due to tariff-driven

volatility.

Advancing issues outnumbered decliners by a 2.02-to-1 ratio

on the NYSE and by a 1.41-to-1 ratio on the Nasdaq.

The S&P 500 posted 19 new 52-week highs and no new lows

while the Nasdaq Composite recorded 63 new highs and 23 new

lows.