Weekly Market Recap— June 2–6: Jobs Cool, Yields Rise, and Tech Rebounds

Markets Reach Milestones as Policy, Politics, and Inflation Collide

U.S. equity markets ended the first full week of June with renewed momentum. The S&P 500 climbed 1.5%, breaking through the 6,000 mark for the first time since February, while the Nasdaq surged 2.2% on strength in tech. Small-caps joined the rally, with the Russell 2000 gaining over 3%. Sentiment was supported by cooling—but not collapsing—labor data, falling rate hike expectations, and ongoing enthusiasm in AI-driven sectors. Yet beneath the surface, volatility in yields and growing political rhetoric added new layers of complexity.

Labor Market Cools Without Cracking

Friday’s jobs report showed the U.S. economy added 139,000 jobs in May, below the 12-month average of 149,000 but still signaling growth. The unemployment rate held steady at 4.2%, and average hourly earnings rose 0.4% month-over-month and 3.9% year-over-year—signs that wage growth is moderating without rolling over. The result gave markets exactly what they wanted: data soft enough to suggest disinflation, but not weak enough to spark near-term recession fears.
Source: U.S. Bureau of Labor Statistics

Trump Calls for Full-Point Cut as Political Pressure Builds

Adding a political twist, former President Donald Trump publicly called for a full percentage-point rate cut, referencing global central banks as justification. While the Federal Reserve continues to signal patience and a “higher for longer” approach, Trump’s comments fed into market speculation that rate policy could become increasingly politicized ahead of the 2025 election cycle.

Yields Reprice the Fed’s Next Move

Treasury yields responded to the shifting narrative. The 10-year yield rose to 4.51%, and the 2-year climbed to 4.94%, signaling investor skepticism over whether the Fed can stay on hold into 2026. Markets are now pricing in increased odds of a September rate cut—even as the Fed itself remains noncommittal.

Tech Rebounds, Energy Pulls Back

After recent weakness, technology stocks found their footing. Palantir surged 6.3%, with Nvidia and AMD recovering some ground as AI-related enthusiasm re-entered the conversation. Attention now turns to Oracle and Adobe, both reporting earnings next week and expected to provide a read-through on enterprise tech budgets.

Meanwhile, oil prices slipped after Saudi Arabia signaled potential increases in output, raising the specter of oversupply. Brent crude fell over 1% for the week, dragging the energy sector into the red. Defensive and financial stocks outperformed on the margin, as investors rotated into names with stronger balance sheets and more predictable cash flows.

Looking Ahead: CPI, Earnings, and Sentiment

Next week’s calendar features key economic and earnings events, led by Wednesday’s CPI print. Markets will be looking for signs that inflation is continuing to moderate—anything less could challenge the recent rally. Earnings from Oracle and Adobe could offer an enterprise-level view into AI adoption and pricing power. And with the Fed’s next policy decision just around the corner, rate expectations will remain top-of-mind as markets test new highs.

📅 Looking Ahead: Key Events & Earnings (Week of June 10–14)

Date	Event / Earnings	Why It Matters
Mon, Jun 10	NFIB Small Business Optimism Index	Gauge of small business hiring and sentiment.
Tue, Jun 11	Oracle (ORCL) Earnings	Key insight into enterprise AI and cloud demand.
Wed, Jun 12	Consumer Price Index (CPI)	Top-tier inflation data ahead of next Fed meeting.
Thu, Jun 13	Initial Jobless Claims	Weekly snapshot of labor market tightness.
Fri, Jun 14	U. of Michigan Consumer Sentiment	Forward-looking view of consumer confidence.