Week Ahead June 2 thru June 6

Week Ending: May 30, 2025 | Looking Ahead: June 2–6

📈 Market Highlights

Stocks Rebound:
U.S. equities rallied across the board, gaining around 2% for the week. This rebound, while strong, didn't fully erase losses from earlier in the spring. The S&P 500 and NASDAQ are now roughly flat year-to-date, after a volatile February–April period.

May’s Recovery:
May ended on a sharply positive note:

• NASDAQ up 9.6%

• S&P 500 up 6.2%

• Dow Jones up 3.9%

Tech led the charge, with the S&P 500’s Information Technology sector up over 10% for the month.

Tariff Tensions:
Markets responded favorably to updates on U.S.–EU trade talks, though questions remain about the White House’s authority to impose tariffs. A legal challenge to that authority added some late-week uncertainty.

Treasury Yields Pull Back:
The 30-year yield slipped below the psychologically important 5.00% level, ending the week at 4.91%—down from a peak of 5.09% earlier in May. The 10-year settled at 4.39%, reflecting cooling inflation pressures and strong bond demand.

Inflation Cools Slightly:
Core PCE inflation for April came in at 2.5% year-over-year, down from 2.7% the previous month. That’s still above the Fed’s 2.0% target, but the trend is encouraging for doves.

Consumer Sentiment Steadies:
The University of Michigan’s sentiment index edged up slightly to 52.2, matching April’s final reading but still hovering near multi-year lows.

Corporate Earnings Hold Up:
S&P 500 companies reported a 12.9% earnings increase compared to a year earlier. That’s solid, though it’s down from the 17.8% growth seen in Q4. Healthcare posted the strongest sector performance with 43% earnings growth.

Jobs in the Spotlight:
Markets now await May’s employment data. April added 177,000 jobs—well above expectations—and another upside surprise could reinforce confidence in economic resilience.

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🪐 Astrological Market Outlook