June 6th, 2025
Market Performance:
• U.S. stocks headed higher on Friday’s solid job data. Major indexes, which were already up overnight, added to gains after the data. A cool down between Elon Musk and President Trump is allowing investors to focus elsewhere. White House aides told Politico and Reuters that a call was scheduled between President Trump and Musk for today.
• The Dow Jones Industrial Average rose more than 500 points, or 1.3%, while the S&P 500 added 1% to touch its highest level since February. The tech-heavy Nasdaq Composite also gained 1%. The S&P briefly touched the 6,000 mark on Friday shortly after the market open, its highest level since February.
• The 10-year Treasury yield jumped seven basis points to back above 4.45% as odds of Federal Reserve rate cuts dipped on the news.
Economic Takeaways:
• U.S. job growth slowed slightly in May, a sign employers remained cautious about hiring. The U.S. added 139,000 jobs in May, the Labor Department reported Friday, above the gain of 125,000 jobs economists polled by The Wall Street Journal had expected to see.
• A stronger-than-expected 0.4% increase was revealed in hourly wages last month. They’re up 3.9% over the last year. “Another relatively solid jobs report despite fears of a lingering slowdown,” said Collin Martin, director, fixed income strategy at the Schwab Center for Financial Research. “Nonfarm payroll gains have held in a very tight range lately, and while the monthly growth has slowed, it’s still positive. While the payroll gains have slowed, that’s natural given how strong they were in 2022. The weakness that many on Wall Street have been expecting still hasn’t really shown up in the data yet. Treasury yields rose following the release since this won’t give the Fed any urgency to cut rates sooner than expected. It wasn’t all roses, however, as the participation rate declined to 62.4% from 62.6% in April and the previous two months were revised down.”
• President Trump urged the Feds for a rate cut. In a social media post, the president criticized the central bank for being “too late,” saying policymakers should go for a full point cut. “‘Too late’ at the Fed is a disaster! Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!” Trump wrote.
• Bitcoin (/BTC) rose 2% early Friday, rebounding from Thursday’s sharp drop triggered by the public spat between Elon Musk and President Trump. Other major cryptocurrencies also saw gains. Crypto-linked stocks like Coinbase Global (COIN) and MicroStrategy (MSTR) were up more than 1.7% in pre-market trading.
• Following the latest jobs report, expectations for a June rate cut have virtually disappeared, while the odds of a July cut dropped to under 15%, down from around 30% beforehand, according to the CME FedWatch Tool. September cut expectations also declined to 63% from 70%, though the probability of a cut by then—if not in July—remains at 75%.
Job Data is Out
The unemployment rate—calculated from a separate survey than the headline jobs report—held steady at 4.2% in May.
Employers added 147,000 jobs in April, according to revised data, while May payroll growth showed modest gains. Revisions to earlier figures revealed that March and April saw 95,000 fewer jobs created than initially estimated.
Stocks rose in early trading following the release.
“We’re in a low-hiring, low-firing environment,” said Brett Ryan, senior U.S. economist at Deutsche Bank. “There’s no clear signal of a deeper downturn ahead. Is the labor market particularly strong? No—but that’s been the case for the past six to twelve months.”
Federal employment declined by 22,000 jobs in May—the fourth straight monthly drop.
President Trump has prioritized shrinking the federal workforce, but the latest data reflects only a portion of those planned cuts. Many affected workers remain on paid leave or are receiving severance, so they are not counted as unemployed. Additionally, legal challenges and court rulings have slowed the pace of reductions.
As for the Federal Reserve, the latest jobs report is unlikely to shift its current wait-and-see approach. Policymakers are expected to use the summer months to monitor how evolving trade dynamics affect business hiring and pricing decisions.
Microsoft Reclaims Title as World’s Most Valuable Company
Microsoft (MSFT) opened at a fresh all-time high on Friday, edging past Nvidia (NVDA) to become the world’s most valuable publicly traded company.
Shares rose nearly 1% in early trading, pushing the stock above $47 and lifting Microsoft’s market capitalization to over $3.5 trillion—surpassing Nvidia’s $3.46 trillion valuation.
Year to date, Microsoft has gained 12%, outpacing Nvidia’s roughly 6% rise. The software giant has fully rebounded from its early April dip, which followed the announcement—and later rollback—of President Trump’s reciprocal tariff policy.
Notables
• Lululemon (LULU) shares sank 20% as tariffs hit the company’s profit outlook and prices. The apparel retailer cut guidance but beat Wall Street’s earnings expectations. In the press release, LULU cited a “dynamic macroenvironment.”
• Broadcom (AVGO) fell 2.4% in pre-market trading after narrowly topping Wall Street’s expectations for quarterly revenue and earnings. The AI chipmaker also issued third-quarter revenue guidance just slightly above consensus. While no estimates were missed, the results fell short of a standout performance, which appears to be weighing on shares following a strong run to all-time highs since April.
• Circle Internet Group (CRCL) extended its surge, rising another 11.8% pre-market after gaining over 160% during its IPO debut. The company, a key player in the stablecoin space, is benefiting from momentum as stablecoin legislation gains bipartisan backing in the Senate, along with support from President Trump.
• Tesla (TSLA) rebounded 4.5% after yesterday’s steep decline, which was triggered by a public spat between CEO Elon Musk and President Trump over the federal budget. Trump threatened to revoke billions in government subsidies and contracts. Despite recent weakness in international sales, Tesla shares had rallied off April lows before the selloff.
• DocuSign (DOCU) dropped 19% in early trading after delivering disappointing quarterly results that fell short of investor expectations.
• Petco Health & Wellness (WOOF) slid 10% even after matching earnings and revenue forecasts and reaffirming its guidance. The company noted its 2025 outlook assumes current tariffs on Chinese and other imports remain unchanged.
What’s Important Ahead
Investors can prepare for the annual Apple (AAPL) Worldwide Developers Conference next week and look out for developments in the company’s products and offerings.
Other things to look forward to:
June 9: Expected earnings from Casey’s General (CASY).
June 10: Expected earnings from GameStop (GME) and Stitch Fix (SFIX).
June 11: May Consumer Price Index (CPI) and expected earnings from Chewy (CHWY).
June 12: May Producer Price Index (PPI) and expected earnings from Adobe (ADBE).
June 13: Preliminary June University of Michigan Consumer Sentiment.
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