Dow Jones - 42,270.07 (+0.13%) 

Nasdaq - 19,113.77 (-0.32%) 

S&P 500 - 5,911.69 (-0.01%) 

• Fairly flat despite tariff uncertainty. Despite tariff concerns, equity markets were nearly flat on Friday. They closed the month of May with a gain. The S&P 500 logged its best May since 1990 and its best month since Nov. 2023, with a close of over 6%. The Dow added 4% over the month and the Nasdaq gained nearly 10%.
• International markets slumped. Japan’s benchmark Nikkei 225 declined 1.1% with investors eyeing growing inflation. In South Korea, the Kospi dropped 0.9% as markets remain rattled ahead of a presidential election in a tough political climate. Hong Kong's Hang Seng Index sank 1.5% as China’s CSI 300 sli0.3% Australia's S&P/ASX 200 hovered around the baseline, with a gain of less than 0.1%
• Inflation cooled down in April. According to the latest reading of the Personal Consumption Expenditures (PCE) index, inflation has cooled down some and rose in line with expectations on a monthly and annual basis. "We’ll have to wait until next month to get a real sense of how tariffs are affecting the economy,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. "The question isn’t whether tariffs will have an impact, it’s a question of how big that impact will be.”
• Headline sentiment data. According to the final May reading of the University of Michigan consumer sentiment survey released Friday, headline sentiment remained unchanged from the previous month, halting a four-month streak of sharp declines. "Expected business conditions improved after mid-month, likely a consequence of the trade policy announcement," Joanne Hsu, director of consumer surveys at the University of Michigan, said in the release.
• Bonds activity. A Bloomberg index that tracks bonds is down more than 1.2% in May after all maturities came under pressure. The 30-year yield rose for a third consecutive month, its longest losing streak since 2023, while yields on two- and 10-year tenors posted their first monthly increase this year.
• Gold went lower. The yellow metal fell below $3,300 on a strong U.S. dollar as U.S./China trade tensions amplify.
• Oil dipped. WTI oil traded lower ahead of an OPEC+ decision this weekend on a potential July supply hike. Analysts have revised down their oil price forecasts for the third straight month as OPEC+ supply swells. A survey of 40 economists and analysts in May forecasts Brent crude will average $66.98 per barrel in 2025, down from April's $68.98 forecast, while U.S. crude is seen at $63.35, below last month's $65.08 estimate. Prices have averaged roughly $71.08 and $67.56 so far this year respectively, as per LSEG data.
• Bitcoin dropped. The leading cryptocurrency fell below $104,000.
• Job claims. Initial Jobless Claims increased 14K from the prior week to 240K, and above the 230K expected. Continuing Claims increased 26K from last week.to 1.919M.
• Tariff concerns. The U.S. Court of International Trade and a U.S. District Court ruled on Wednesday that President Trump does not have the authority to impose the 10% global baseline tariff and 20% fentanyl duty on China. On Thursday the U.S. Court of Appeals for the Federal Circuit granted a stay on the trade-court ruling, pending a hearing scheduled for June 9th. The District Court ruling is scheduled to go into effect on June 12, allowing time for appeals.
• Hiking tariffs on steel imports. The European Union criticized U.S. President Donald Trump’s move to hike tariffs on steel imports, saying it “adds further uncertainty to the global economy.” Trump announced Friday he was doubling tariffs on steel imports to 50% from 25%. An EU spokesperson said it is “prepared to impose countermeasures, including in response to the latest U.S. tariff increase.”
• What to pay attention to: There aren't any positive catalysts on the horizon for next week. However key earnings will come in from Dollar General (DG), CrowdStrike (CRWD), Hewlett Packard Enterprise (HPE), Broadcom (AVGO), Ciena (CIEN), lululemon (LULU), and Petco (WOOF).

• Tesla (TSLA)
• Nvidia (NVDA)
• Meta (META)
• SalesForce (CRM)
• Apple (AAPL)

Biggest Gainers

• Regencell Biosciences (RGC) - 18.36%
• Pony AI, Inc. (PONY - 12.30%
• Uranium Energy Corp. (UEC) - 11.78%
• MP Materials Corp. (MP) - 10.22%
• Zscaler, Inc. (ZS). - 9.79%

Biggest Losers

• Summit Therapeutics, Inc. (SNMT) - 30.50%
• The Gap, Inc. (GAP) - 20.18%
• Regeneron Pharmaceuticals (REGN) - 19.01%
• Ambarella, Inc. (AMBA) - 15.10%
• The Cooper Companies (COO) - 14.61%

Weekly Notables

Elon Musk Juggled Drugs on the Campaign Trail Says NYT

Elon Musk allegedly used a variety of drugs—including ketamine, ecstasy, and psychedelic mushrooms—while serving in a prominent advisory capacity within Donald Trump’s administration, according to sources cited by The New York Times. These individuals claim Musk’s ketamine use was so frequent it caused bladder problems, and that he often traveled with what was believed to be a daily supply of roughly 20 pills. 

Costco Delivers on Q3 Earnings

Costco Wholesale Corp. reported better-than-expected third-quarter earnings on Thursday, highlighting its strength in managing economic headwinds and changing tariffs through scale, customer loyalty, and smart pricing strategies. For the quarter ending May 11, the retail giant posted earnings of $4.28 per share, surpassing Wall Street expectations and reinforcing its stability amid reduced consumer spending on non-essential items. Despite the strong performance, Costco’s shares saw little movement in pre-market trading on Friday. The stock is up 10% so far this year as of Thursday’s close.

The Week Ahead

• Potential market moving catalysts this week: Monday (6/2): Construction Spending, ISM Manufacturing Index. Tuesday (6/3): Factory Orders. Wednesday (6/4): ADP Employment Change, EIA Crude Oil Inventories, ISM Services, MBA Mortgage Applications Index. Thursday (6/5): Continuing Claims, EIA Natural Gas Inventories, Initial Claims, Productivity – Revised, Trade Balance, Unit Labor Costs. Friday (6/6): Average Workweek, Average Hourly Earnings, Consumer Credit, Nonfarm Payrolls, Unemployment Rate.
• Earnings on deck this week: Monday (6/2): Campbell's Co (CPB), Science Applications International Corp. (SAIC), Credo Technology Group Holdings Ltd. (CRDO). Tuesday (6/3): Ferguson Enterprises Inc. (FERG), Dollar General Corp. (DG), NIO Inc. (NIO), Ollie's Bargain Outlet Holdings Inc. (OLLI), Signet Jewelers (SIG), CrowdStrike Holdings Inc. (CRWD), Hewlett Packard Enterprise Co. (HPE), Guidewire Software (GWRE), Asana Inc. (ASAN). Wednesday (6/4): Dollar Tree Inc. (DLTR), Webster Financial Corp. (WBS), Thor Industries Inc. (THO), MongoDB Inc. (MDB), Five Below Inc. (FIVE), PVH Corp. (PVH), Argan Inc. (AGX), Verint Systems Inc. (VRNT). Thursday (6/5): Ciena Corp. (CIEN), Brown-Forman Corp. (BF/B), Victoria's Secret &Co. (VSCO), Cracker Barrel Old Country Store Inc. (CBRL), Broadcom Inc. (AVGO), Lululemon Athletica Inc. (LULU), Samsara Inc. (IOT), Rubrik Inc. (RBRK). Friday (6/6): no reports.