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The Mid-Day Buzz  

The Mid-Day Buzz   image

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Sophia Reyes · June 9, 2025 1:09 PM

June 9th, 2025

Market Performance:

  • U.S. stocks started off on a well note this new week as a week of data is anticipated that could give key details on inflation. Investors are also encouraged by progress in trade talks. The S&P 500 managed to keep its footing at the 6,000 level.
  • The S&P 500 gained 0.1% after the benchmark rose above 6,000 to notch its highest close since February. The Dow Jones Industrial Average was roughly flat, while the tech-heavy Nasdaq Composite drifted up 0.2%.

Economic Takeaways:

  • Stocks ended a solid week last week lifted by better-than-expected May U.S. jobs growth of 139,000. Analysts had expected 130,000.
  • The 10-year Treasury note yield remains a little over 4.5% after the jobs data reduced the chances of Federal Reserve rate cuts.
  • On Wednesday the government will put 10-year notes up for bid.
  • On the corporate front, Apple began its worldwide developers conference on Monday. Analysts expect more details about Apple’s partnerships, AI expansion, possible new AirPod features, and interface, according to a Barron’s report.
  • Wall Street is eagerly watching out for AI updates.
  • The market is also keeping watch on the tension in L.A. over anti-deportation protests after President Trump sent in the National Guard.
  • U.S. and Chinese representatives began discussions in London today.
  • President Trump called on Congress to scrap the debt limit in a social media post last Wednesday. His big, beautiful bill contains a $4 trillion increase in the debt ceiling. Traders are eager to see what happens on Capitol Hill with this.
  • Bitcoin (BTC) climbed more than 3.5% in pre-market trading, while shares of crypto-related companies such as Coinbase Global (COIN) and MicroStrategy (MSTR) gained over 2%. The recent boost in the crypto space has been driven by the Trump administration’s favorable stance on digital assets and the implementation of new fair-value accounting rules from the Financial Accounting Standards Board (FASB).
  • FactSet now projects S&P 500 earnings growth for the second quarter at 4.9%, the lowest since late 2023 and a sharp decline from the 13.5% seen in Q1. It’s also well below the 9.3% estimate from March 31. This comes as the S&P 500’s forward price-to-earnings (P/E) ratio has climbed back above 21—nearing historic highs.
  • Meanwhile, Chinese exports to the U.S. plunged nearly 35% last month, marking the steepest monthly drop in over five years. Total Chinese export growth slowed to 4.8% in May from 8.1% in April, and consumer prices also declined, suggesting weakening domestic demand.
  • On the technical front, the S&P 500 (SPX) closed just above 6,000 on Friday—its first close above that level since February 21. While the index finished below its intraday high, it marked another three-month peak following Thursday’s pullback from the same resistance level. Sustained closes above 6,000 would be needed to confirm a breakout.
  • The Relative Strength Index (RSI) for the S&P 500 reached 66 last week, still below the overbought threshold of 70, which it briefly hit in mid-May.
  • According to the New York Fed’s May 2025 Survey of Consumer Expectations, the perceived chance that the US unemployment rate will rise over the next year fell by 3.3 percentage points to 40.8%.
  • As for interest rates, the odds of a June Fed rate cut remain at zero, with July cut expectations slipping to 16%, according to the CME FedWatch Tool. September continues to hold the highest likelihood, with odds above 60%. The chances of rate cuts declined across the board after last Friday’s strong jobs report.

Goldman Sachs and Morgan Stanley Turn Bullish on U.S. Stocks

Optimism is building on Wall Street as more strategists raise their outlooks for U.S. equities. Morgan Stanley (MS) and Goldman Sachs (GS) are the latest to join the growing chorus expecting resilient economic growth to help limit any summer pullback.

According to Bloomberg, Morgan Stanley strategist Michael Wilson—who abandoned his long-held bearish stance in mid-2024—now points to a sharp improvement in corporate earnings as a key driver for continued strength in the S&P 500 (^GSPC). Wilson reaffirmed his 12-month price target of 6,500, suggesting an 8% upside from current levels.

Notables

  • Tesla (TSLA) dipped 1.7% in pre-market trading following a public feud between former President Donald Trump and CEO Elon Musk. If tensions escalate further this week, the fallout could impact not only Tesla but also competitors to Musk’s SpaceX. Tesla shares fell 14.8% last week. Attention now shifts to the potential unveiling of Tesla’s Robotaxi in Austin, Texas, and a downgrade from Baird, which lowered its rating on the stock to Neutral.
  • AppLovin (APP) dropped 3.8% after Bloomberg reported investor disappointment over the company not being added to the S&P 500® index (SPX).
  • Warner Bros. Discovery (WBD) surged 8.4% in pre-market trading after announcing plans to split into two publicly traded entities: Streaming & Studios and Global Networks. The company said the move would allow each segment to strengthen its respective brand.
  • Omada Health (OMDA) edged higher following a more than 40% gain on Friday during its IPO debut. The company specializes in virtual care for chronic conditions.
  • Qualcomm (QCOM) gained 1% after revealing it will acquire Alphawave Semi for $2.4 billion. Qualcomm said the deal will enhance its portfolio by combining Alphawave’s high-speed wired connectivity and compute solutions with its own processing technologies.
  • Circle (CRCL) extended its post-IPO rally on Monday, climbing for a third consecutive session after last week’s blockbuster debut.The stablecoin issuer’s stock jumped over 15%, trading near $122 per share and pushing its market valuation to approximately $24 billion.
  • Shares of International Business Machines (IBM) hit all-time highs, surpassing a market cap of $250 billion for the first time in the company’s history.
  • Robinhood (HOOD) stock slipped 4% after it didn’t make it into the benchmark S&P 500 index as some speculated it might.

What’s Important Tomorrow

Investors can look forward to GameStop (GME) and Stitch Fix (SFIX) earnings on Tuesday.

Disclaimer

The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. All stock data and market trends discussed are current as of the time of publication and are subject to change. Always conduct your own research or consult a licensed financial advisor before making any investment decisions. The author and publisher are not responsible for any losses incurred based on the information presented.

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