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 Data

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 also rose to 7.618 million, indicating a robust labor market despite an increase in initial jobless claims and layoffs attributed to AI.

PMI and Inflation Insights

Manufacturing and services PMIs showed resilience, with the ISM manufacturing PMI rising to 54.0 and services PMI to 54.5. However, inflation pressures persist, as indicated by the prices index remaining elevated.

Treasury Yields and Bond Market

U.S. Treasury yields rose, with the 10-year note yield increasing to around 4.55%. Investment-grade corporate bonds underperformed, although new issues were oversubscribed.

European Market Update

The pan-European STOXX 600 Index declined by 0.53%. The Eurozone economy contracted by 0.2% in Q1, with retail sales falling 0.4% in April. However, car sales in the UK rose significantly, driven by electric vehicles.

Japan's Economic Landscape

Japan's stock market showed mixed results, with the Nikkei 225 gaining 0.39%. Wage growth exceeded expectations, but consumer spending remained weak. The Bank of Japan hinted at a possible rate hike in June due to inflation concerns.

China's Market Performance

Chinese equities fell, with the CSI 300 Index down 1.54%. PMI data indicated uneven economic recovery, while developments in the AI sector provided some positive sentiment.

Other Key Markets

Colombia's markets rallied following a strong performance in the presidential election, while Indonesia faced a sell-off due to currency pressure and policy uncertainty.

Market Index Performance

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%

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