S&P 500 Breaks 6,000 on Strong Jobs Report
Markets rallied this week as the S&P 500 climbed back above 6,000 for the first time since February. The move was fueled by Friday’s May jobs report, which showed 139,000 new jobs added, beating expectations of 125,000. Unemployment held at 4.2%, while wages rose 0.4%, reinforcing investor confidence in the labor market and economic outlook.
Tariffs, Trade Talks, and Tech Turbulence
On June 4, the U.S. implemented 50% tariffs on imported steel and aluminum, but markets had largely priced them in following the previous week’s announcement. Steel stocks rose, but the broader indexes remained mostly unaffected.
Meanwhile, President Trump and President Xi held a 90-minute call on Thursday to restart formal trade negotiations. The tone was constructive, and both leaders exchanged invitations for official visits — a step markets welcomed as progress toward a broader deal.
However, sentiment briefly soured later that day when Elon Musk publicly criticized Trump’s spending bill, calling out its impact on the deficit and the elimination of EV tax credits. Tesla shares dropped more than 14%, dragging down tech and contributing to a 0.5% decline in the S&P 500 Thursday afternoon.
Services Cool, But Confidence Climbs
The ISM Services PMI came in at 49.9, indicating a slight contraction in the service sector — the first since June 2024. While that raised some concerns, broader market momentum remains intact.
Most notably, recession fears have eased dramatically. Betting markets now peg the odds of a U.S. recession in 2025 at just 26%, down from 66% just one month ago — a strong sign of growing confidence in the economy.
Looking Ahead
As summer begins, all eyes will be on the Federal Reserve, upcoming inflation data, and corporate earnings. We’ll continue to track every shift and signal to keep you informed and ahead of the curve.