TL;DR

US job openings beat, factory orders fall, Alphabet drops on Chrome ruling, “Revenge Tax” stirs rate risk.

Highlights

• US job openings rose by 191,000 to 7.391 million in April, beating forecasts; hiring and layoffs both increased, while the quits rate edged down1.
• US factory orders fell 3.7% in April (worse than expected), led by a sharp drop in transportation equipment; ISM Manufacturing PMI remained in contraction at 48.52.
• Nasdaq gained 9.6% in May—its best May since 1997—driven by Nvidia (+24%) and Microsoft (+16.5%); S&P 500 rose 6.2%8.
• Alphabet shares dropped up to 2% after a judge’s Chrome ruling raised antitrust breakup risk; Apple reportedly considering Perplexity as a Google Search alternative4.
• Broadcom began shipping its Tomahawk 6 AI chip; Citi raised its price target to $276 ahead of June 5 earnings9.
• Trump’s budget bill “Revenge Tax” proposal targets foreign investors from DST countries, raising concerns about capital outflows, higher Treasury yields, and dollar weakness3.
• Trump administration faces a July 8 trade deadline, with most tariff deals still pending; betting markets see a 66% chance of tariff removal7.
• Trump to launch an official $TRUMP crypto wallet and trading app with Magic Eden, reinforcing pro-crypto policy10.
• US House to hold hearings on crypto market structure and the CLARITY Act on June 4; Billy Long’s IRS nomination advances11.
• NIO Q1 net loss widened to $930M on a revenue miss; shares fell over 4% pre-market despite higher deliveries and improved margins12.
• Volkswagen to cut 35,000 jobs in Germany by 2030, move Golf production to Mexico, and shift Wolfsburg to EVs and a four-day week13.

Commentary

US equities opened mixed after a strong May, with tech leadership intact but signs of caution emerging8. The labor market remains steady, as April job openings exceeded expectations and hiring picked up, but the simultaneous rise in layoffs and a lower quits rate suggest some cooling in worker confidence1. Manufacturing remains a weak spot: factory orders fell more than forecast, dragged by transportation, and the ISM PMI stayed below 50, signaling continued contraction in the sector2.

Tech remains in focus after the Nasdaq’s outsized May rally, but headline risk is rising8. Alphabet shares are under pressure on the prospect of a Chrome browser divestiture after a judge’s antitrust ruling, while Apple ’s reported interest in alternative search providers could threaten Google’s search revenue streams4. Broadcom ’s AI chip launch and bullish analyst calls keep semiconductors in play ahead of its earnings9.

Macro risks are front and center for rates and FX. The “Revenge Tax” in Trump’s budget bill could deter foreign capital, potentially driving Treasury yields higher and weighing on the dollar if enacted3. Trade policy uncertainty persists, with the July 8 tariff deadline approaching and most major deals still unresolved; traders are watching for any late-breaking headlines that could move global equities or the dollar7.

Crypto and digital assets are in the policy spotlight, with the Trump administration’s planned $TRUMP wallet launch and Congressional hearings on market structure and regulation scheduled for tomorrow1011. NIO and Volkswagen both highlight ongoing challenges and restructuring in the global EV sector, with NIO’s Q1 miss weighing on sentiment and Volkswagen accelerating its EV transition with significant job cuts and production shifts1213.