Weekly Market Highlights: June 1 – June 7.

Analysis, Geopolitics & Economy, Market Analyses, Market News |

Assalamu Alaykum,

Here’s a quick recap of what happened in the US stock market last week (June 1-June 7). From major index movements to key economic events, stay informed about the trends that matter to halal investors like you.

Market Overview

  • Major indexes climbed for the second week, buoyed by cooling but resilient labor market data and strong AI-related sentiment.
  • Small caps outperformed, with the Russell 2000 up 3.19%, followed by the Nasdaq Composite (+2.18%) and S&P 500 (+2.02%).
  • S&P 500 and Dow Jones are now positive YTD, while small- and mid-caps are still trailing.

AI-Fueled Tech Rally

  • Information technology led gains, boosted by:
    Strong AI-related earnings
    Meta Platforms’ 20-year clean energy deal with Constellation Energy to power its AI operations
  • Investor optimism remains high on AI infrastructure and application leaders.

Trade Update: US–China Tensions Ease Slightly

  • Tensions with China flared earlier in the week after Trump’s comments but eased after a positive call with President Xi on Thursday.
  • Trump’s post saying the call “resulted in a very positive conclusion” raised hopes of renewed progress.

Labor Market: Cooling but Resilient

  • Nonfarm Payrolls (May):
    Added 139K jobs (vs. 130K expected)
    Unemployment steady at 4.2%
  • Market reaction: Stocks and Treasury yields climbed Friday.
  • Other labor reports were softer, including:
    ADP private payrolls: +37K (lowest since Mar 2023)
    Jobless claims: +8K to 247K, highest since Oct 2024
  • However, April job openings and hires increased, showing ongoing demand for workers.

Business Activity: Both Manufacturing and Services Contract

  • ISM Manufacturing PMI (May):
    Fell to 48.5% (vs. 49.5% expected)
    3rd straight contraction
    Imports dropped sharply due to weak demand and tariff pricing
  • ISM Services PMI:
    Fell to 49.9%, first contraction in 11 months
    Prices surged, hitting a 17-month high
    New orders weakened, but employment improved

Key Takeaways & Market Outlook

  • Labor market cooling, but not collapsing—supporting a soft-landing narrative.
  • AI enthusiasm fuels tech and broader equity gains.
  • Both manufacturing and services activity dipped, adding to economic caution.
  • Trump–Xi call eases trade concerns for now, but volatility remains.

Word of the Week

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