On Friday, 6 June 2025, global stock markets closed with mixed results, driven by a combination of a stronger-than-expected US jobs report and ongoing uncertainties surrounding US trade policies. The day’s economic data and geopolitical developments, particularly US-China trade talks and a public spat between US President Donald Trump and Tesla CEO Elon Musk, significantly influenced investor sentiment.
In the United States, the S&P 500 rose 0.87% to close above 6,000 points for the first time since February, reaching 5,991 points. The Nasdaq Composite gained 0.67%, ending at 19,242.61, bolstered by technology sector strength, while the Dow Jones Industrial Average saw a modest increase of 0.08%, closing at 42,305.48. The US Bureau of Labor Statistics reported that nonfarm payrolls added 139,000 jobs in May, surpassing consensus estimates of 130,000, with the unemployment rate holding steady at 4.2%. This resilient labour market data eased concerns about an economic slowdown, boosting equity markets, though downward revisions to March and April job figures tempered optimism.
However, the positive jobs data reduced expectations for immediate Federal Reserve rate cuts, with the probability of a July cut dropping to less than 15% and September cut odds falling to 63%, according to the CME FedWatch Tool. Treasury yields rose, with the 10-year note yield climbing to 4.328%, reflecting expectations of sustained high interest rates amid persistent inflation concerns.
In Asia, markets showed varied performance. Japan’s Nikkei 225 ended the week down 0.59%, reflecting caution due to unresolved US-Japan trade talks ahead of the G7 summit. The MSCI Asia Pacific Index remained flat, with markets in Indonesia, the Philippines, and South Korea closed for holidays. Chinese stocks saw some support from expectations of stimulus to counter US tariff pressures, though uncertainty persisted after a call between Trump and Chinese President Xi Jinping offered little clarity on trade negotiations.
European markets were subdued, with the STOXX 600 closing flat or slightly lower, as investors digested the fallout from the Trump-Musk dispute and awaited further trade developments. The US dollar firmed slightly, while the euro weakened, reflecting broader market caution.
Commodities markets were also affected. Gold prices rose, trading near $3,300, as investors sought safe-haven assets amid trade uncertainties. Oil prices remained volatile, with Brent crude settling at $64.21 per barrel after a 2.1% decline, pressured by a gloomier growth outlook
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