Stocks Continue Up Last Week:

U.S. stocks climbed for the second consecutive week, with small-cap stocks leading the gains as the Russell 2000 Index rose 3.19%, followed by the Nasdaq Composite up 2.18% and the Dow Jones Industrial Average up 1.17%, all joining the S&P 500 in positive territory for the year. Information technology stocks outperformed, buoyed by optimism around artificial intelligence (AI) following strong corporate earnings and news that Meta Platforms signed a 20-year deal with Constellation Energy to support its AI operations. Meanwhile, trade tensions between the U.S. and China resurfaced after social media comments from President Donald Trump, though a phone call between Trump and President Xi Jinping later in the week offered a more hopeful tone, with Trump describing the discussion as reaching “a very positive conclusion for both countries”

DOW & TECH

THE DOW JONES INDUSTRIAL AVERAGE (DJIA) is the oldest continuing U.S. market index with over 100 years of history and is made up of 30 highly reputable “blue-chip” U.S. stocks (e.g. Coca-Cola Co., Microsoft).

The Dow ended the week up 1.17% at 42,762.87.

THE NASDAQ COMPOSITE INDEX tracks most of the stocks listed on the Nasdaq Stock Market – the second-largest stock exchange in the world. Over half of all stocks on the NASDAQ are tech stocks.

The tech-driven Nasdaq ended the week up 2.18%, closing at 19,529.95.

LARGE, MEDIUM, & SMALL CAP

THE S&P 500 LARGE-CAP INDEX is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. The S&P 500 is regarded as one of the best gauges of prominent American equities’ performance, and by extension, that of the stock market overall.

The S&P 500 ended the week up 1.5%, closing at 6,000.36.

THE S&P 400 MID-CAP INDEX is the benchmark index made up of 400 stocks that broadly represent companies with midrange market capitalization between $3.6 billion and $13.1 billion. It is used by investors as a gauge for market performance and directional trends in U.S. stocks.

The S&P 400 mid-cap ended the week up 1.66%.

THE RUSSELL 2000 (RUT) SMALL-CAP INDEX measures the performance of the 2,000 smaller companies included in the Russell 3000 Index. The Russell 2000 is managed by London’s FTSE Russell Group and is widely regarded as a leading indicator of the U.S. economy because of its focus on smaller companies that focus on the U.S. market.

The Russell 2000 ended the week up 3.19%.

U.S. COMMODITIES / FUTURES OVERVIEW

THIS WEEK’S ECONOMIC NEWS

Mixed Economic Data:

May’s economic data offered a mixed but slightly more positive picture of the U.S. economy, with job growth slowing yet outperforming expectations and other indicators showing signs of strain. The Labor Department reported 139,000 new nonfarm payrolls in May—down from April’s revised 147,000 but above the forecasted 130,000—while the unemployment rate held steady at 4.2%. The upbeat jobs report, which followed weaker data from ADP and rising initial jobless claims, helped lift both stocks and Treasury yields. Meanwhile, job openings and hiring picked up in April, suggesting continued labor demand despite the start of broad tariffs under the Trump administration. However, manufacturing activity shrank for the third straight month, with the ISM PMI dropping to 48.5%—its lowest level since November—while services activity also unexpectedly contracted for the first time in nearly a year, registering a PMI of 49.9%. Despite falling demand, prices remained high in both sectors, and while new orders dropped sharply, service sector employment rebounded into expansion territory.

Earnings Focus:

The 1st Quarter 2025 earnings reporting is ongoing, with 99% or 496 companies having reported earnings.  Of the companies that have reported, 76% have reported earnings above analyst expectations. This is below the five and ten-year average of 77% and 75%. The projected Year over Year earnings growth rate for the S&P 500 is currently 13.7% while YOY revenue growth is 5.0%.

When you examine the individual sectors, nine of the eleven sectors are estimated to report a year-over-year increase in earnings. The Communications and Materials sectors have the highest earnings growth rate for the quarter, while the Real Estate sector has the lowest anticipated growth compared to Q1 2024.  The forward four-quarter P/E ratio of the S&P 500 is 22.0, which is above the ten and thirty-year average.

During the upcoming week, 2 S&P 500 companies (with zero Dow 30 components) are scheduled to report results for the first quarter and two companies are scheduled to report for the second quarter.

THIS WEEK’S HIGHLIGHTED STORY

https://www.visualcapitalist.com/u-s-manufacturing-by-state-who-gains-most-from-made-in-america/

June 6, 2025

What We’re Showing:

President Trump has championed the idea that a key part of making America great again is bringing back industries that left the country in recent decades. With his tariff-driven trade policy, the White House has promoted “Made in America” as a way to create jobs and boost the economy.

Based on April 2025 data from the Bureau of Labor Statistics, this map highlights the U.S. states leading and lagging in manufacturing employment.

Key Takeaways:

Several Southern states have also built strong manufacturing bases. North Carolina (459,300), Georgia (426,500), and Tennessee (364,300) each rank among the top states, supported by industries such as automotive, aerospace, and food processing.

Wisconsin, ranked in the top 10 for total manufacturing employment, stands out for outperforming its size. Although it’s only the 20th most populous state, its manufacturing base remains strong, thanks in part to food and dairy processing. In per capita terms, it’s number one in the nation with 7,763.8 manufacturing jobs for every 100,000 people.

Florida, another top 10 state, has emerged as a growth story. Between 2019 and 2023, the state’s manufacturing employment grew by nearly 10%, highlighting the sector’s expansion in one of the country’s largest economies.

At the other end of the spectrum, Wyoming (10,600 jobs), Alaska (11,900), and Washington, D.C. (1,200) recorded the lowest levels of manufacturing employment. The latter (D.C.) also has the lowest numbers per capita.

Sources:

All index and returns data from Norgate Data and Commodity Systems Incorporated and Wall Street Journal

W E Sherman & Co., LLC. W E Sherman & Co., LLC.  News from Reuters, Barron’s, Wall St. Journal, Bloomberg.com, ft.com, guggenheimpartners.com, zerohedge.com, ritholtz.com, markit.com, financialpost.com, Eurostat, Statistics Canada, Yahoo! Finance, stocksandnews.com, marketwatch.com, visualcapitalist.com, wantchinatimes.com, BBC, 361capital.com, pensionpartners.com, cnbc.com, FactSet, Morningstar/Ibbotson Associates, Corporate Finance Institute. LSEG I/B/E/S, Factset Earnings Insight

Commentary from T Rowe Price Global markets weekly update — https://www.troweprice.com/personal-investing/resources/insights/global-markets-weekly-update