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Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in the US from June. Let’s get started.
Stock market updates
June marked another strong month for U.S. markets, with all major indices posting solid gains. The S&P 500 surged by 4.53% to close at $6,204.95, while the Dow Jones climbed 4.23%, ending at $44,094.77. The Nasdaq led the rally with an impressive 5.86% jump to $20,369.73. Meanwhile, the Russell 2000 gained 5.07% to $2,175.04, and the S&P MidCap 400 rose 3.62% to finish at $3,102.87. A month of steady growth and sustained investor confidence across the board.
Hims & Hers Health will acquire European telehealth platform Zava to accelerate its global expansion, adding services in Ireland, France, and Germany. The deal will boost its customer base by 50%, adding 1.3 million users. Zava will retain its branding initially, with its CEO becoming GM of Hims’ international business. Financial details weren’t disclosed, but the move reflects confidence in European market dynamics and pricing advantages.
Procter & Gamble plans to cut 7,000 non-manufacturing jobs as part of a two-year restructuring aimed at offsetting slowing U.S. growth and tariff-related costs. The program includes exiting some brands and markets, with more details expected in July. The company anticipates a $600 million tariff impact in fiscal 2026 and up to $1.6 billion in restructuring costs. Shares fell on the news as P&G joins other major firms making significant layoffs amid economic uncertainty.
Starbucks will roll out its AI-powered “Green Dot Assist” to 35 stores this month, with a full U.S. and Canada launch in fiscal 2026 to ease baristas’ tasks and speed up service. Built with Microsoft Azure’s OpenAI, the assistant provides real-time support on drink prep and equipment issues via tablet. It’s part of Starbucks’ tech-led push to revive U.S. sales and streamline operations.
Linde has signed a long-term agreement to supply oxygen and nitrogen to Blue Point Number One’s upcoming 1.4 million metric ton low-carbon ammonia plant in Ascension Parish, Louisiana. The industrial gas giant will invest over $400 million to build and operate a world-scale air separation unit, set to be the largest in the Mississippi River corridor and operational by 2029. This move strengthens Linde’s Gulf Coast infrastructure and supports the creation of a low-carbon ammonia value chain, aligning with rising clean energy demand.
Tesla shares jumped 9.2% after Elon Musk confirmed the launch of its robotaxi service in Austin, allowing owners to earn money by adding their vehicles to the autonomous fleet via the Tesla app. Musk compared it to an Airbnb-Uber model, with most earnings going to the owner and Tesla taking a small cut. Analysts see strong potential, with the market projected to hit $951 billion by 2029 and a wider rollout, including the AI-powered Cybercab, expected by 2026.
Top gainer and top loser Halal stocks in the USA
Economic updates
U.S. payrolls rose by 139,000 in May, beating expectations, while unemployment held steady at 4.2%. Wage growth was stronger than forecast, and health care and hospitality led job gains. However, government jobs fell, and household survey data showed a drop in full-time employment. The report highlights labor market resilience but also signals potential future strain amid ongoing economic uncertainty and trade tensions.
The Fed’s latest Beige Book reports slight economic contraction over the past six weeks, with hiring mostly flat and businesses cautious amid high uncertainty. Inflation pressures are rising due to tariffs, with many expecting faster cost increases. Regional activity varied, with Boston, New York, and Philadelphia seeing declines, while Richmond, Atlanta, and Chicago reported growth. Tariffs were cited frequently, reflecting growing concern over their economic impact.
The U.S. budget deficit hit $316 billion in May, bringing the fiscal year total to $1.36 trillion — a 14% increase from last year. Soaring debt servicing costs on $36.2 trillion of national debt drove the surge, with $92 billion paid in interest, now the third-largest spending item. While tax revenue rose 15% in May, spending still outpaced it, and Wall Street leaders warn that the growing deficit — now over 6% of GDP — could trigger future economic turmoil.
President Trump announced a finalized China trade deal with 55% tariffs locked in, but logistics and retail leaders warn the economic damage is already done. High tariffs are straining supply chains, raising consumer prices, and risking thousands of U.S. jobs, as firms scramble to front-load imports. Despite tariff pause windows, fears of recession, soft freight volumes, and manufacturing declines reflect continued uncertainty in U.S.-China trade dynamics.
Economists expect U.S. GDP to slow to 1.3% this year, down from 1.9%, as tariffs, geopolitical tensions, and elevated oil prices drive inflation above the Fed’s 2% goal, according to a NABE survey. Nearly 80% of forecasters cite import duties as the top economic risk, with many expecting inflation to rise up to 1 percentage point as a result. While stagflation risks loom, the Fed is projected to cut rates by 0.5% through mid-2026 as unemployment gradually rises.
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