Midday Market Roundup for Friday, June 6, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Friday, June 6, 2025:

1. U.S. Job Growth Slows, Unemployment Rate Holds Steady

The U.S. economy added 139,000 jobs in May, slightly above economists’ expectations but marking a slowdown from earlier in the year. The unemployment rate remained unchanged at 4.2% for the third consecutive month. The Labor Department report highlights that businesses are holding onto workers amid persistent tariff uncertainty and policy unpredictability, which has made future planning difficult for many employers. The steady jobless rate and moderate payroll gains are likely to keep the Federal Reserve on hold for now, with markets expecting no change to rates at the upcoming meeting. The following policy easing is not anticipated until September. Ongoing debates in Congress over tax and spending legislation, as well as continued tariff uncertainty, are adding to the cautious tone among employers and investors (Reuters).

2. Stocks Rally on Jobs Data and Signs of Easing Trump-Musk Feud

U.S. stock indexes surged at midday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq all up more than 1%. The rally was fueled by the jobs report, which alleviated some concerns about growth, and by optimism that tensions between President Trump and Elon Musk are easing. This positive market response to the jobs data and the signs of easing in the Trump-Musk feud have created a sense of optimism among investors. Tesla shares rebounded by more than 5% after Musk and Trump signaled a willingness to de-escalate their recent public feud, which had rattled markets earlier in the week. Technology stocks broadly outperformed, led by chipmakers and large-cap tech names. The S&P 500 is now at its highest level since February, while the Nasdaq is also approaching new highs (Nasdaq, Yahoo Finance, Reuters).

3. Asia-Pacific and Global Markets Mixed After Trump-Xi Call

Asia-Pacific markets traded mixed as investors digested the recent phone call between President Trump and China’s President Xi Jinping. The leaders agreed to have officials meet soon to advance trade negotiations, a development that could significantly impact global markets. This news helped ease some of the most severe negative scenarios but left underlying tensions unresolved. Japan’s Nikkei and South Korea’s Kospi rose, while Hong Kong’s Hang Seng futures pointed to a softer open. European stocks also edged higher, supported by optimism over U.S. jobs data and hopes for progress in U.S.-China trade talks (CNBC).

4. Global Growth Outlook Remains Subdued as OECD Cuts Forecasts

The OECD this week trimmed its global growth outlook to 2.9% for both 2025 and 2026, citing the ongoing impact of U.S. tariffs, policy uncertainty, and slowing U.S. growth. The organization warned that further escalation of trade barriers could lead to a decrease in global output and an increase in inflation. At the same time, the U.S. budget deficit is projected to rise sharply due to recent tax and spending legislation. The OECD’s revised U.S. growth forecast for 2025 is just 1.6%, down from 2.2% earlier this year. Economists note that while the latest U.S. jobs report offers some reassurance, underlying risks from tariffs and policy shifts remain significant (Reuters).

Sources:

Reuters: https://www.reuters.com/world/us/us-job-growth-slows-may-unemployment-rate-steady-42-2025-06-06/

Nasdaq: https://www.nasdaq.com/articles/stocks-rally-strong-us-jobs-report-alleviates-growth-concerns

Yahoo Finance: https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-surge-after-jobs-report-tesla-jumps-on-musk-trump-cooldown-133037032.html

CNBC: https://www.cnbc.com/2025/06/06/asia-stock-markets-today-live-updates-for-june-6-2025.html

Reuters: https://www.reuters.com/business/autos-transportation/wall-street-futures-edge-up-ahead-jobs-data-tesla-rebounds-2025-06-06/

Reuters: https://www.reuters.com/world/china/oecd-trims-global-outlook-trump-trade-war-hits-us-growth-2025-06-03/

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