42. Weekly Market Recap: Key Movements & Insights
🎢 Wall Street Braces for Continued Trade-Driven Swings
Wall Street Ends Strong Month on Tenterhooks as Tariff Turmoil Resurfaces
U.S. stocks concluded a robust May with a volatile session on Friday, as renewed tariff anxieties and conflicting signals on U.S.-China trade relations gripped Wall Street. Despite significant monthly gains, the week ended with investors bracing for further uncertainty, underscored by presidential rhetoric and ongoing legal battles over trade policy.
Tariff Tensions Dominate Week's Close
The market experienced a choppy trading day on Friday following President Donald Trump's assertion that China had “totally violated” its trade agreement with the United States, though specific details were not provided. This injected a fresh dose of unpredictability into investor sentiment.
Friday's Fluctuations: The Dow Jones Industrial Average managed a slight gain, closing up 54 points, or 0.13%, after a session marked by swings. The broader S&P 500 edged down by a mere 0.01%, while the tech-heavy Nasdaq Composite saw a more pronounced decline of 0.32%. Earlier in the day, markets had stumbled on a Bloomberg report suggesting that the Trump administration was considering an expansion of tech sanctions on China, potentially adding licensing requirements for transactions with Chinese firms that are majority-owned by already-sanctioned entities. This news saw the S&P 500 and Nasdaq dip by as much as 1.1% and 1.7%, respectively, during afternoon trading.
The 'TACO' Trade Persists? Despite the sharp rhetoric, the overall market reaction was somewhat contained. Some Wall Street observers pointed to the "TACO" (Trump Always Chickens Out) trade theory, suggesting a degree of skepticism that maximalist threats will fully materialize into sustained policy.
White House Signals More Action: Adding to the uncertainty, White House Deputy Chief of Staff for Policy Stephen Miller indicated on Friday that the administration is preparing further trade actions targeting China, according to Reuters.
"We expect bouts of market volatility ahead as investors continue to navigate a range of market, economic, and geopolitical risks,” analysts are loudly shouting.
Legal Limbo for Trump's Tariffs
The trade war narrative returned to the forefront this week, significantly influenced by a rapidly evolving legal landscape concerning existing tariffs.
Court Battles Intensify: Mid-week, stocks received a temporary boost after the Court of International Trade (CIT) issued a ruling late Wednesday blocking most of President Trump’s tariffs on legal grounds. However, this rally proved short-lived as traders anticipated an aggressive appeal from the White House. By Thursday, a federal appeals court paused the CIT’s ruling, leaving the president’s extensive tariff agenda in a state of flux as its legality undergoes further deliberation.
Administration's Stance: President Trump, via his Truth Social platform, criticized the CIT decision and urged the Supreme Court to intervene. Peter Navarro, a top trade adviser, affirmed that the administration is pursuing “all strategic options” and that the "Trump tariff agenda is alive, well, healthy and will be implemented."
Broader Implications: “The stunning, head-spinning, mind-boggling trade fiasco will not be resolved quickly,” said Greg Valiere, chief U.S. policy strategist at AGF Investments. “It probably will land in the Supreme Court — and even that may not settle the issue.” This ongoing legal uncertainty continues to cloud the outlook for businesses reliant on international trade. In a separate but related case, a U.S. District Court Judge ruled that Trump's tariffs would irreparably harm two American toy companies, issuing a preliminary injunction. However, this was also paused pending an expected appeal.
Economic Undercurrents and the Dollar's Slide
Beyond the tariff headlines, investors digested fresh economic data. Figures released Friday showed the Federal Reserve’s preferred inflation gauge cooled slightly more than economists anticipated in April. However, the data also revealed a significant drop in consumer spending, adding another layer to the complex economic picture.
The U.S. dollar gained slightly on Friday. Nevertheless, the U.S. dollar index, which tracks the currency against a basket of six major foreign counterparts, was poised to end May marginally lower. This would mark its fifth consecutive month of decline, its longest such losing streak since 2020. The dollar has broadly weakened this year, with the index down more than 8%, amid concerns on Wall Street about the diminishing appeal of American assets.
In a move seen as a potential bulwark against U.S. tariffs, China announced plans to allocate 500 billion yuan (approximately $70 billion) to fast-track new infrastructure projects, aiming to bolster domestic demand amid an uncertain export outlook.
May's Market Resilience Meets Renewed Caution
Despite the end-of-month jitters, investors who remained in the market through May were rewarded. The benchmark S&P 500 surged more than 6% for the month, marking its best monthly performance since November 2023 and its strongest May since 1990. The Nasdaq Composite also had an impressive run, gaining about 9.5% in May, its best month since November 2023 as well. The S&P 500 is up approximately 0.5% year-to-date.
Upcoming Key Events:
Monday, June 2:
Earnings: Credo Technology Group Holding Ltd (CRDO)
Economic Data: ISM Manufacturing PMI
Tuesday, June 3:
Earnings: CrowdStrike (CRWD), Dollar General (DG)
Economic Data: JOLTs Job Openings
Wednesday, June 4:
Earnings: Dollar Tree (DLTR), Five Below (FIVE)
Economic Data: ISM Services PMI, EIA Petroleum Status Report
Thursday, June 5:
Earnings: Broadcom (AVGO), DocuSign (DOCU), Lululemon Athletica Inc. (LULU)
Economic Data: None
Friday, June 6:
Earnings: Shanghai Rural Commercial Bank Co., Ltd. (601825), Avic Aviation High-Technology Co., Ltd. (600862)
Economic Data: Non-Farm Payrolls, Unemployment Rate
Here are the most pertinent earnings details.
Due to the volume of reports during the earnings season, it is not feasible to include every single one in our calendar.
⚡ AI-optimized, human-verified: Our expert team carefully selected Premium market intelligence from Finchat.io data. Explore now →
Index Insights: How Major Benchmarks Performed Last Week
Price>MA10: 🟢
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend*:🟢
Trend Signal: 🟢
*When Price and Moving Averages are all green, the Market Trend will also be green
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Sector Performance: Winners and Losers from Last Week
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Winners
🏢 Real Estate (+2.54%)
Real Estate led the market this week with a strong gain of 2.54%. This robust performance highlights renewed investor confidence in property markets and a rebound in real estate investment sentiment.
🛡️ Consumer Defensive (+2.04%)
Consumer Defensive stocks rose by 2.04%, reflecting steady demand for essential goods and services and showcasing the sector’s resilience in uncertain times.
⚡ Utilities (+2.04%)
Utilities also posted a 2.04% gain, benefiting from their defensive characteristics and consistent demand, even as broader market conditions fluctuated.
🏥 Healthcare (+1.76%)
Healthcare advanced by 1.76%, indicating positive sentiment and ongoing strength in the sector amid evolving industry dynamics.
💰 Financial (+1.26%)
Financials climbed 1.26%, as optimism returned to banking and financial services, possibly driven by favorable economic data or earnings reports.
🏭 Industrials (+1.25%)
Industrials gained 1.25%, suggesting renewed confidence in manufacturing and infrastructure growth.
📱 Communication Services (+1.04%)
Communication Services increased by 1.04%, supported by stable demand and positive developments in media and telecom.
💻 Technology (+0.71%)
Technology stocks edged up by 0.71%, as the sector continued to attract interest following recent innovation and growth trends.
🧱 Basic Materials (+0.62%)
Basic Materials rose 0.62%, reflecting steady demand for commodities and resource-based industries.
🛢️ Energy (+0.25%)
Energy posted a modest gain of 0.25%, as commodity prices stabilized and demand remained consistent.
Losers
🛍️ Consumer Cyclical (+0.01%)
Consumer Cyclical stocks were nearly flat, rising just 0.01%. This minimal change suggests ongoing caution and subdued discretionary spending in the sector.
🌟 Weekly Industry Leaders 🌟
☢️ Uranium (+12.44%)
Uranium led all industries this week with a remarkable 12.44% gain. The sector’s surge reflects strong demand for nuclear energy and renewed interest in alternative power sources.
💻 Health Information Services (+7.86%)
Health Information Services posted an impressive 7.86% increase, highlighting the growing importance of digital health solutions and data-driven healthcare innovation.
💊 Drug Manufacturers – Specialty & Generic (+5.00%)
Drug Manufacturers – Specialty & Generic advanced by 5.00%, reflecting continued demand for pharmaceuticals and healthcare products.
🎰 Gambling (+4.86%)
Gambling stocks rose by 4.86%, indicating resilience in consumer spending on entertainment and online gaming platforms.
⚡ Utilities – Renewable (+4.34%)
Utilities – Renewable gained 4.34%, benefiting from the ongoing shift toward clean energy and sustainable infrastructure.
🚗 Auto & Truck Dealerships (+3.81%)
Auto & Truck Dealerships increased by 3.81%, driven by steady consumer demand and new vehicle launches.
✈️ Aerospace & Defense (+3.72%)
Aerospace & Defense posted a 3.72% gain, supported by robust government spending and innovation in the sector.
🛡️ Insurance – Reinsurance (+3.58%)
Insurance – Reinsurance rose by 3.58%, reflecting stability and renewed investor confidence in the insurance industry.
🏥 REIT – Healthcare Facilities (+3.57%)
REIT – Healthcare Facilities advanced by 3.57%, underscoring the essential role of healthcare infrastructure and real estate.
🧳 Travel Services (+3.55%)
Travel Services gained 3.55%, as the sector benefited from increased travel activity and consumer confidence
🚀 Top Market Gainers: Crypto Strategies, Turnarounds, and Biotech Breakthroughs Spark Explosive Rallies
SBET SharpLink Gaming Inc (+770.83%) 🏟️
SharpLink Gaming skyrocketed after unveiling a transformative Ethereum Treasury Strategy, signaling a bold embrace of blockchain in the sports betting and iGaming space. The announcement that Ethereum co-founder Joseph Lubin will become Chairman upon closing of a private placement electrified investors, positioning SharpLink at the intersection of crypto and online gaming innovation.
IMCC IM Cannabis Corp (+465.45%) 🌿
IM Cannabis Corp staged a dramatic comeback, reporting a return to profitability in Q1 2025. The company’s plans to voluntarily delist from the Canadian Securities Exchange suggest a strategic pivot, fueling speculation about its next chapter and igniting a powerful rally.
LVWR LiveWire Group Inc (+305.94%) ⚡
LiveWire Group shares surged over 300% in a stunning move, despite the absence of any substantial news. The spike appears driven by speculative trading and momentum, as investors piled in on volatility and rumors.
SPRO Spero Therapeutics (+259.04%) 💊
Spero Therapeutics soared after its phase III trial for an oral antibiotic targeting complicated urinary tract infections was stopped early due to strong efficacy. The partnership with GSK and the positive trial outcome have investors betting big on Spero’s future in the biotech space.
SGN Signing Day Sports (+177.21%) 🏈
Signing Day Sports rallied after announcing a definitive agreement with BlockchAIn Digital Infrastructure, a profitable data hosting company. The move signals a strategic expansion into blockchain and data services, sparking renewed optimism about the company’s growth prospects.
🔻 Biggest Decliners: Scams, Dilution, and Clinical Setbacks Crush Stocks
ELPW eLong Power Holding Limited (-78.60%) 🏮
eLong Power Holding collapsed amid allegations of being a Chinese pump-and-dump scam, leaving investors reeling from heavy losses and underscoring persistent risks in thinly traded microcaps.
PNBK PatriotBank NA (-73.15%) 🏦
PatriotBank tumbled after announcing plans to offer up to $250 million in securities, raising fears of massive shareholder dilution and triggering a wave of selling.
MDCX Medicus Pharma Inc (-65.29%) 💉
Medicus Pharma shares plunged following the pricing of a $7 million public offering. The capital raise stoked dilution concerns and sent the stock sharply lower.
REVB Revelation Biosciences Inc (-64.76%) 🧬
Revelation Biosciences dropped after raising $4 million in a public offering, with investors reacting negatively to the prospect of further dilution in a challenging biotech market.
RCKT Rocket Pharmaceuticals Inc (-60.13%) 🚀
Rocket Pharmaceuticals cratered after a patient death in a pivotal phase II gene therapy trial for Danon disease. The unexpected serious adverse event cast a shadow over the company’s clinical pipeline and led to a steep sell-off.
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