Global Markets Weekly Update - June 05, 2026
U.S. Market Overview
Major U.S. stock indexes finished the week lower, with the Nasdaq Composite leading the decline at 4.68%. The S&P 500 posted its first weekly loss since March, while the Dow Jones Industrial Average fared better with a decline of only 0.32%. Early gains from AI optimism were overshadowed by oil price volatility and a stronger-than-expected payroll report, which raised concerns about persistent inflation and the Federal Reserve's monetary policy.
Key Economic Indicators
The U.S. economy added 172,000 jobs in May, significantly above the forecast of 80,000. The unemployment rate remained steady at 4.3%. Job openings rose to 7.618 million, the highest in nearly two years, while initial jobless claims increased to 225,000, the highest since February. Layoffs also rose, with AI cited as a reason for job cuts.
PMI Data
Manufacturing and services PMIs indicated resilience in the economy, with the ISM manufacturing PMI rising to 54.0 and the services PMI to 54.5. However, both surveys indicated ongoing price pressures.
Treasury Yields
U.S. Treasury yields rose, with the 10-year note yield increasing to around 4.55% amid solid economic data and hawkish Fed commentary.
Market Performance Summary
| Index | Friday's Close | Week's Change | % Change YTD |
|---|---|---|---|
| DJIA | 50,866.78 | -165.68 | 5.83% |
| S&P 500 | 7,383.74 | -196.32 | 7.86% |
| Nasdaq Composite | 25,709.43 | -1,263.19 | 10.62% |
| S&P MidCap 400 | 3,693.57 | -31.56 | 11.75% |
| Russell 2000 | 2,833.44 | -85.90 | 14.16% |
International Markets
European markets were mixed, with the STOXX Europe 600 Index declining 0.53%. The Eurozone economy contracted by 0.2% in Q1, and retail sales fell 0.4% in April. Japan's Nikkei 225 gained 0.39%, while the Bank of Japan hinted at a possible rate hike. In China, equities fell as the economic recovery showed signs of unevenness, despite positive developments in the AI sector.
Other Key Markets
Colombia's markets rallied ahead of a presidential runoff, while Indonesia faced a sell-off due to currency pressure and policy uncertainty.
This summary provides an overview of the key market insights for the week ending June 5, 2026. For more detailed information, please refer to the full report.