Weekly Stock Market Recap: May 30 - June 6, 2025
Introduction
Welcome to our weekly stock market recap, where we dive into the performance of domestic and international markets for the week of May 30 to June 6, 2025. This detailed analysis covers equities and fixed income, offering insights for investors seeking to understand market trends. At Link Financial Advisory, our Missoula-based team is dedicated to empowering clients through personal financial planning, wealth management, and 401k benchmarking. If you caught our recent video updates on LinkedIn, Facebook, or YouTube Shorts, this post provides a deeper exploration of the market dynamics, tailored for those looking to make informed investment decisions.
Domestic Market Performance
The US stock market exhibited resilience during the week, with all major indices posting gains. The following table summarizes the performance:
| Index | Close | Week Performance | Year-to-Date Performance |
|---|---|---|---|
| Dow Jones Industrial Average | 42,763 | +1.2% | +0.5% |
| S&P 500 Index | 6,000 | +1.5% | +2.0% |
| NASDAQ | 19,530 | +2.2% | +1.1% |
The S&P 500 closed at 6,000 on June 6, 2025, a milestone not reached since February, reflecting a 1.5% weekly gain (Edward Jones). The Nasdaq led with a 2.2% increase, driven by strong technology sector performance, while the Dow Jones rose 1.2%. Daily movements included a notable 1.6% gain in the S&P 500 on June 4, though volatility emerged mid-week due to company-specific events.
To visualize this performance, refer to the S&P 500 chart available at FRED, which shows daily closing values for the week, highlighting the steady upward trend culminating in the 6,000-point milestone.
Key Events and Drivers
Several factors shaped the market’s performance:
- Robust Jobs Report: The May jobs report, released on June 6, showed the US economy added 139,000 jobs, exceeding expectations of 125,000, with the unemployment rate steady at 4.2% (Charles Schwab). Average hourly earnings rose 0.4%, surpassing forecasts of 0.3%, signaling a healthy labor market that bolstered investor confidence.
- US-China Trade Progress: Following a temporary trade deal in May, which reduced tariffs on Chinese products to 30% and on American products to 10% for 90 days, ongoing negotiations continued to ease market concerns (Investopedia). A phone call between President Trump and Chinese President Xi Jinping on June 4 further supported optimism, contributing to market gains.
- Corporate Earnings: The technology sector drove significant gains, with companies like Nvidia and Microsoft reporting strong earnings, fueling the Nasdaq’s outperformance (Morningstar). However, challenges included a 14% drop in Tesla’s stock on June 5 due to a public dispute between CEO Elon Musk and President Trump, though it recovered 3.7% the next day. Lululemon Athletica fell 19.8% after trimming its full-year outlook, reflecting consumer sector struggles.
Sector Performance
Sector performance varied, with technology and communication services leading the way:
- Top Performers: Technology (+3.13%), Communication Services (+2.84%)
- Underperformers: Consumer Defensives (-1.36%), Consumer Cyclicals (-1.36%)
Notable stock movements included:
- Gainers: Venture Global (+31.55%), Fortrea (+22.79%), ON Semiconductor (+19.42%), Guidewire Software (+18.95%)
- Losers: PVH (-21.93%), Lululemon Athletica (-16.17%), Brown-Forman (-15.69%)
This divergence underscores the importance of diversification, a key consideration in personal financial planning and wealth management strategies.
Fixed Income Market
In the fixed income market, Treasury yields saw modest increases:
| Asset | Close | Week Performance | Year-to-Date Performance |
|---|---|---|---|
| 10-yr Treasury Yield | 4.51% | +0.1% | +0.6% |
| 2-yr Treasury Yield | 4.04% | +0.15% | Not available |
| Bonds (iShares Core U.S. Aggregate Bond ETF) | $97.28 | -0.8% | +2.6% |
The 10-year Treasury yield rose to 4.51% from 4.41%, and the 2-year yield increased to 4.04% from 3.89% (Morningstar). The iShares Core U.S. Aggregate Bond ETF, a proxy for the broader bond market, declined 0.8% to $97.28 (Edward Jones). These movements reflect investor expectations of economic growth, which could lead to higher borrowing costs, a factor our Missoula team considers when advising clients on fixed income strategies.
International Markets
International markets also showed positive momentum:
| Index/Region | Close | Week Performance | Year-to-Date Performance |
|---|---|---|---|
| MSCI EAFE | 2,618.67 | +0.7% | +15.8% |
| Europe | Not available | +1.4% | +22.8% |
| China | Not available | +2.5% | +16.0% |
The MSCI EAFE index gained 0.7%, closing at 2,618.67 (Edward Jones). European markets likely benefited from the European Central Bank’s rate cut to a two-year low, with Eurozone inflation at 1.9%, a seven-month low. The STOXX 600 rose 4% in May, and the DAX gained 7.1%. In Asia, China’s markets rose 2.5%, driven by optimism over US-China trade talks. These global trends are critical for investors, as they impact US markets through interconnected economic policies.
Long-Term Perspective
The S&P 500’s long-term performance provides valuable context for investors:
| Time Period | Total Return (Approx.) | Notes |
|---|---|---|
| Last 1 Year | +10% | Includes dividends, based on price increase and yield |
| Last 5 Years | +60% | Compounded at ~10% annual return |
| Last 10 Years | +160% | Compounded at ~10% annual return |
| Last 20 Years | +570% | Includes dividends, verified by MacroTrends |
A $10,000 investment in the S&P 500 20 years ago would now be worth approximately $67,000, assuming dividend reinvestment, highlighting the power of long-term investing. For a visual representation, see the S&P 500’s historical performance at MacroTrends. This perspective is crucial for 401k benchmarking and long-term wealth management strategies.
Key Takeaways for Investors
- Focus on the basics: We're halfway through 2025. Now's a great time to review your finances and find tools to optimize your financial picture (think budgeting tools, debt elimination tools, investment trackers)
- Economic Resilience: The strong jobs report and corporate earnings suggest a robust US economy, supporting equity investments.
- Trade Policy Monitoring: Progress in US-China trade talks is encouraging, but investors should watch for developments as tariff pauses expire in July and August 2025.
- Sector Opportunities: The technology sector’s leadership emphasizes the importance of growth-oriented investments, balanced with diversification.
- Global Awareness: European and Asian market trends highlight the need for international exposure in portfolios.
- Long-Term Focus: The S&P 500’s historical returns demonstrate the value of staying invested over time.
Conclusion and Call to Action
The week of May 30 to June 6, 2025, showcased a resilient US stock market, supported by strong economic data and trade progress, with international markets reflecting similar optimism. At Link Financial Advisory, we understand the complexities of these market dynamics and are committed to helping clients in Missoula and beyond achieve their financial goals. Whether you’re a high net worth individual, inheriting wealth, seeking a second opinion, or a C-suite executive managing a company’s 401k plan, our expertise in 401k benchmarking, personal financial planning, and wealth management ensures tailored strategies to meet your needs. Contact us today at Link Financial Advisory to schedule a consultation and take the first step toward securing your financial future. You can also reach out via email at Robert@LinkFinancialAdvisory.com or by using this calendar link.
Member discussion