Weekly Market Recap

Investment Management Views

The first week of June saw equity markets continue May’s momentum. The S&P 500 rallied about 1.5% to close less than 3% away from February’s all-time highs. International stocks failed to keep pace with their domestic counterparts last week, but global stocks reached new all-time highs, driven by the better year-to-date performance of international equities. News that U.S.-China talks in Geneva yielded progress on some minor trade issues led to a rally in Chinese equities, and buoyed emerging markets more broadly. After Nvidia’s bullish guidance, investors were hoping to see more from AVGO, which sold off modestly after its earnings release. Lululemon (LULU) also disappointed investors, as the retailer continues to face a cost-conscious consumer.

Last week’s economic data reports point to a less robust but still expansionary economic environment. This highlight was Friday’s non-farm payrolls report, a better-than-feared report that points to a low-hiring, low-firing environment. Such a wait-and-see release from a key economic indicator will keep the Fed on hold for longer, and expectations for a September cut fell modestly last week. Trading desks also appear to share a similar mindset, allowing the market’s positive momentum to push prices higher as traders opt to follow, rather than fight, the tape.

Further trade talks between U.S. and Chinese officials in London are set to take center stage this week. The G7 Summit, an event Trump is scheduled to attend, comes next on June 15 in Canada. As for economic data, the May CPI will be released on Wednesday; however, tariff volatility may add some noise, making the data difficult to interpret. Also ahead are auctions for 3-year, 10-year, and 30-year Treasuries, which will be closely watched for signs of investors’ cooling attitudes toward U.S. debt. Additionally, Republicans in the Senate are preparing to release revisions to Trump’s “Big Beautiful Bill” as lawmakers continue to grapple with the fiscal implications of the spending package.

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