Market Recap – Monday, June 9, 2025
Quiet Trading with a Positive Bias: Trade Talks, Economic Data, and Tech Stocks in Focus
Stocks ended the day mostly higher, but the trading was fairly quiet. The S&P 500 added a small gain, continuing its strong recovery from earlier in the year, now up 20% from its April low. The Nasdaq rose a bit too, while smaller stocks (Russell 2000) performed even better. Big tech companies mostly went up, especially Tesla, which saw a boost from news about better relations between Musk and Trump. However, Apple was a bit weaker after its big event (WWDC). The best-performing sectors today were technology companies, energy, homebuilders, and regional banks, while companies in software, telecom, and healthcare lagged behind. Treasury bonds did well, and the value of the US dollar dropped slightly. Gold went up, and Bitcoin jumped. Oil prices also rose.
Key Highlights
Trade Talks: US-China trade talks didn’t give any clear answers, but there were signs China might ease some of its export rules. Trump is also thinking about replacing the head of the Federal Reserve, which could impact how the economy is managed.
Economic News: A recent survey showed that people expect inflation to stay lower, and there’s more optimism about jobs and income growth. However, a report on job growth showed fewer new jobs than expected, and a key index showed that the services sector is shrinking. This could signal that the economy is slowing down.
Company News: Tesla had a good day, boosted by positive comments from Trump. Qualcomm is buying a UK semiconductor company for $2.4 billion. On the downside, EchoStar is considering bankruptcy protection, and Warner Bros. Discovery confirmed it plans to split into two companies in the next year.
Here's Our Take
Looking ahead, we’ll keep an eye on the ongoing trade talks and any news about changes at the Federal Reserve. The weak job numbers and concerns about the economy could make the market more cautious, but the drop in inflation expectations and better consumer sentiment could help things stay stable. There are opportunities to buy stocks in sectors like tech, energy, and regional banks, but let’s be mindful of potential economic slowdowns and stay prepared for some ups and downs in the market.
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