empty
05.06.2025 12:40 PM
Diverging markets: US stocks stall, Asia accelerates

Dow: -0.22%; S&P 500: flat; Nasdaq: +0.32%. The US services sector contracted in May for the first time in nearly a year. CrowdStrike slumped on a downbeat revenue forecast. The Fed lifted its asset cap on Wells Fargo, sending the stock to a three-month high. GlobalFoundries climbed on plans to ramp up investment. South Korea's KOSPI hit an 11-month peak amid post-election optimism.

This image is no longer relevant

US markets end mixed as investors react to economic signals

US equity benchmarks closed Wednesday's session without clear direction. While the broad-market S&P 500 remained nearly unchanged, the tech-heavy Nasdaq posted modest gains. Meanwhile, the Dow Jones slipped into negative territory as fresh economic data reignited concerns about the potential fallout from former President Donald Trump's trade policies.

Services sector under pressure

A disappointing reading came from the services sector, where activity declined in May for the first time in nearly a year. Firms reported rising input costs, reviving questions about slowing economic momentum and the threat of renewed inflationary pressure. Early-session optimism faded toward the close, with trading volumes staying subdued.

Looking back at May's rally

Despite the recent caution, May delivered strong performance: the S&P 500 and Nasdaq notched their biggest monthly gains since November last year. Easing trade rhetoric and a string of upbeat earnings reports helped underpin the rally.

Analysts eye new upswing

Although the S&P 500 remains more than 2% below its record February highs, analysts are cautiously optimistic about the road ahead. Barclays, in particular, has revised its index forecast upward, citing reduced trade risks and expectations for a profit rebound by 2026.

Market recap:

  • The Dow Jones Industrial Average lost 91.90 points (–0.22%) to close at 42,427.74;
  • The S&P 500 inched up by just 0.44 points (+0.01%) to finish at 5,970.81;
  • The Nasdaq Composite gained 61.53 points, or +0.32%, ending the day at 19,460.49.

HPE impresses investors with AI and hybrid cloud

Shares of Hewlett Packard Enterprise rose 0.8% after the company posted better-than-expected quarterly results. Strong demand for AI-driven solutions and hybrid cloud infrastructure drove revenue and profit growth in the second quarter.

GlobalFoundries commits to major investment

GlobalFoundries shares jumped 2.3% following news of a large-scale investment plan. The semiconductor manufacturer intends to pour up to $16 billion into expanding its production capacity, a move analysts view as a strong vote of confidence in the long-term demand for chips.

Wells Fargo: gains prove fleeting

Although Wells Fargo briefly touched a three-month high, shares closed the session down 0.4%. The initial market enthusiasm followed the Federal Reserve's decision to lift a longstanding $1.95 trillion cap on the bank's assets. However, that optimism faded as the day wore on.

Tesla loses ground in Europe again

Tesla shares dropped 3.5%, extending a downward trend as EV sales declined for the fifth consecutive month in key European markets. The numbers deepened concerns about demand sustainability across the region.

CrowdStrike falls on weak revenue forecast

Shares of cybersecurity firm CrowdStrike fell 5.8% after the company issued a quarterly revenue forecast that came in below market expectations. Investors saw the guidance as a potential sign of slowing growth momentum.

Dollar Tree slammed by tariff turbulence

Discount retailer Dollar Tree plunged 8% after sharply cutting its profit outlook. The company now expects adjusted earnings in the second quarter to drop by as much as 50% year-over-year. Management blamed tariff-related volatility for the downgrade.

Asia shows confidence amid global volatility

Stock markets across the Asia-Pacific region opened the day with moderate optimism, as investors awaited fresh commentary from the European Central Bank, expected to outline its policy stance amid a turbulent global economic backdrop.

Canada prepares measured response to US tariff threats

In response to reports of potential new US tariffs on metal products, Canada is considering reciprocal economic measures. Meanwhile, US-EU relations appear to be making headway, with European officials reporting positive momentum in negotiations with Washington.

High-level diplomatic visits: Berlin and Tokyo officials heading to Washington

Japan is dispatching its chief trade envoy, Ryosei Akazawa, to the US on Thursday as part of an ongoing round of bilateral economic talks. He will be joined by Germany's newly elected Chancellor Friedrich Merz, who also plans to visit the US capital.

Markets: winners and losers

  • The MSCI broad index for Asia excluding Japan rose 0.4%, reflecting a measured uptick in risk appetite.
  • Japan's Nikkei edged down 0.5%, likely a result of technical correction.
  • South Korea's KOSPI surged 0.9%, hitting an 11-month high on a wave of political enthusiasm following Lee Jae-myung's victory.
  • Hong Kong's Hang Seng advanced 0.5%, supported by resilient gains in heavyweight tech stocks.

Currency markets: USD seeks direction

The US dollar index, tracking the greenback against six major peers, edged up 0.1% to 98.879, partially clawing back losses from the previous session. The dollar/yen pair rose 0.2% to 143.00, while the euro held steady at $1.1411 after a 0.4% climb the day before.

Commodities: gold pulls back, oil under pressure

Gold edged lower on Thursday after the previous day's rally, while oil prices came under renewed pressure. Two key developments weighed on the market: a surprise buildup in US crude inventories and Saudi Arabia's decision to cut July crude prices for Asian buyers.

Precious metal dips into the red

Gold prices slipped modestly, with the spot rate falling 0.2% to $3,367.30 per troy ounce. Investors appeared to be locking in profits from earlier gains, keeping a close watch on currency and bond market signals for further direction.

Oil slides on inventory surge

West Texas Intermediate (WTI) crude declined 0.5% to $62.58 per barrel. The drop followed data showing a rise in US commercial stockpiles, combined with lingering concerns about the outlook for global demand.

Futures tread water

Futures for the pan-European Euro Stoxx 50 and US S&P 500 e-minis showed little movement, trading near flat. Markets are clearly in wait-and-see mode ahead of fresh macroeconomic signals and central bank policy updates.

Gleb Frank,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Gleb Frank
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Markets on edge: Trump targets EU, inflation and China data in focus

Wall Street and European equity indices opened the week in the red, following losses across Asian markets on Monday. Investors are reacting to the latest bout of trade war rhetoric

14:48 2025-07-14 UTC+2

US Market News Digest for July 14

Donald Trump announced 30% tariffs on goods from the EU and Mexico. The initial market reaction was negative, but the S&P 500 partially rebounded thanks to gains in large-cap stocks

Ekaterina Kiseleva 14:36 2025-07-14 UTC+2

Markets on edge: Trump vs. EU, inflation and China data ahead

Wall Street futures and European shares dipped during Monday's Asian session as investors responded to renewed tariff threats from the United States. Despite the aggressive tone, many still believe President

Thomas Frank 10:40 2025-07-14 UTC+2

Stock Boom: Nvidia Crosses $4 Trillion, Bitcoin Not Lagging Behind, Dow and S&P Rising

Indices Rising: Dow Jones Up 0.43%, S&P 500 Up 0.27%, Nasdaq Up 0.09% Nvdia Ends Trading with Historical Valuation, Exceeding $4 Trillion Delta Positive Outlook Stimulates Aviation and Transport Sectors

Thomas Frank 08:37 2025-07-11 UTC+2

Nvidia Makes History: Market Rising, Company Capitalization Breaks $4 Trillion Ceiling

Indices Up: Dow Jones — 0.49%, S&P 500 — 0.61%, Nasdaq — 0.95% Nvidia Is the First Company to Reach $4 Trillion in Market Value AES Jumps on Sale Attempts

Thomas Frank 10:46 2025-07-10 UTC+2

US Market News Digest for July 9

US stock indices closed the session with modest moves: the S&P 500 edged slightly lower, the Nasdaq 100 posted a mild gain, and the Dow Jones slipped into negative territory

Ekaterina Kiseleva 14:03 2025-07-09 UTC+2

Trump Back in Action: 50% Copper Tariff, More Blows to China, EU

Trump Announces 50% Copper Tariff Announces New Tariffs on Semiconductors, Pharmaceuticals President Trump Says Talks with EU, China Are Making Progress Japan, South Korea Work Hard to Minimize Tariff Damage

Thomas Frank 09:49 2025-07-09 UTC+2

US Market News Digest for July 8

The US stock market shows restrained momentum amid uncertainty over Donald Trump's potential return to high tariffs. Although the US president has expressed a willingness to negotiate, market participants

Ekaterina Kiseleva 12:08 2025-07-08 UTC+2

Trade storm over Asia: Japan, Korea face 25% tariff hit

Japan, South Korea face 25% tariffs by Aug. 1 Australian dollar rises as RBA keeps rates on hold The pan-European STOXX 600 index (.STOXX) was unchanged at 543.22

Thomas Frank 10:52 2025-07-08 UTC+2

Canceled deals, fresh letters – marching toward trade chaos? Trader's calendar for June 7-9

Symbolically, it was on July 4, Independence Day, that Donald Trump signed what he himself called the "Big Beautiful Bill," which, according to the White House, will "fulfill campaign promises."

Svetlana Radchenko 14:07 2025-07-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.