TL;DR

S&P 500 tops 6,000 on jobs data; Trump eyes dovish Fed shift; U.S.-China rare earth talks underway.

Highlights

• Trump to announce new Fed chair soon, praises Kevin Warsh, calls for 1% rate cut; Powell criticized 1.
• U.S. and China hold London talks on trade and rare earths; China grants 6-month export licenses to General Motors , Ford , Stellantis 25.
• S&P 500 closes above 6,000 (+1.5%) after strong May jobs report (+139k); Nasdaq +2.2%, Dow +1.2% 17.
• Retail investors bought $23B in U.S. equities in May; foreign investors withdrew $37B; 30-year Treasury yield tops 5% 6.
• Nvidia holds 87.7% AI accelerator market share, projects $200B revenue; urges U.S. to ease China chip export curbs 11.
• Meta in talks for $10B+ investment in Scale AI; AI spending and defense applications in focus 10.
• Circle IPO surges 300%, market cap $23B; strong demand from Ark, BlackRock; stablecoin integration talks with big tech 9.
• Ethereum ETFs see $281M weekly inflow; BlackRock’s ETHA nears $5B AUM; Bitcoin ETFs see outflows 16.
• Russia launches major drone and missile assault on Ukraine; U.S. expects further strikes targeting key sites 312.
• IAEA to vote June 10 on Iran non-compliance; U.S. reimposes sanctions on 30+ Iran-linked entities 413.
• Tesla shares fall 15% on 13% Q1 sales drop and Musk-Trump dispute; SpaceX, NASA missions flagged at risk 208.
• Westinghouse to build 10 AP1000 reactors by 2030 in $75B U.S. nuclear expansion after Trump order 19.

Commentary

U.S. equities enter the week with renewed momentum after the S&P 500 closed above 6,000, driven by a stronger-than-expected jobs report and rotation into growth and tech stocks 17. However, elevated Treasury yields—30-year at 5%—and persistent foreign outflows from U.S. equities highlight ongoing cross-currents in risk sentiment. Retail investors remain net buyers, but higher yields and global bond market volatility may keep fixed income and equity markets sensitive to macro headlines 6.

Monetary policy is in the spotlight as Trump signals an imminent Fed chair announcement and calls for a 1% rate cut, raising the prospect of a more dovish Fed stance. His praise for Kevin Warsh and criticism of Powell inject fresh uncertainty into the Fed outlook, with potential implications for rates, the dollar, and risk assets 1.

Tech and AI remain market drivers. Nvidia ’s dominance and revenue projections keep the sector in focus, while Meta ’s potential $10B+ investment in Scale AI underscores escalating AI infrastructure spending and defense applications 1110. The Circle IPO’s surge and strong Ethereum ETF inflows signal robust institutional and retail demand for digital assets, even as Bitcoin ETFs see outflows 916.

Geopolitical risk is elevated. U.S.-China trade and rare earth negotiations may ease short-term supply concerns for U.S. automakers, but broader trade and tech tensions persist 25. Russia’s large-scale assault on Ukraine and the expectation of further strikes, along with the upcoming IAEA vote on Iran, could drive safe-haven flows and impact commodities and defense stocks 3124. Tesla ’s sharp decline and the Musk-Trump feud introduce additional volatility for EV and aerospace sectors 208.

Key watch items for traders: Fed chair signals, U.S.-China talks, bond yield movements, and any escalation in Ukraine or Iran. Monitor sector rotation, especially in AI, defense, and energy, and watch for continued flows into digital assets.