WEEKLY MARKET RECAP – June 5, 2026
The S&P 500’s nine-week winning streak came to an end as a sharp Friday sell-off in semiconductor stocks weighed heavily on the broader market. The index finished the week down about 2.5%, while the NASDAQ fell 4.7% and the Dow slipped 0.2%.
The labor market continued to show resilience in May, with job growth exceeding economists’ expectations for a third consecutive month. The economy added 172,000 jobs, and upward revisions to prior data lifted the three-month average gain to 188,000 jobs—the strongest pace since March 2024.
Treasury yields resumed their upward climb after a brief pause, driven by the stronger-than-expected employment report. Short-term rates led the move higher, with the 2-year Treasury yield rising to 4.16% on Friday from 4.00% a week earlier.
Bond markets increasingly reflected expectations that the Federal Reserve may raise interest rates before year-end. According to CME FedWatch, futures pricing on Friday implied a roughly 72% probability of a rate increase ranging from a quarter-point to three-quarters of a point by December. Markets assigned a 27% chance of no change and less than a 1% probability of a rate cut.
Corporate earnings remained a bright spot. FactSet reported that S&P 500 companies delivered average first-quarter earnings growth of 28.6% year over year, the strongest pace since the fourth quarter of 2021 and the sixth consecutive quarter of double-digit gains. The information technology sector led all industries with earnings growth of 54.0%.
Oil prices remained volatile as developments in the Middle East continued to influence energy markets. U.S. crude briefly rose above $96 per barrel on Wednesday before settling near $90 on Friday, ending the week up almost 4%.
Investors will closely watch Wednesday’s Consumer Price Index report for signs of whether inflation continued to accelerate in June. April CPI showed inflation running at a 3.8% annual rate—the highest since May 2023—with energy costs accounting for roughly 40% of the increase from March. Core inflation, which excludes food and energy, stood at 2.8%.
Major U.S. Economic Reports
| Report | Period | Actual | Previous |
| ISM manufacturing | May | 55.1 | 54.5 |
| Construction spending | April | 0.3% | 0.6% |
| Auto sales | May | 16.1 million | 15.9 million |
| Job openings | April | 7.6 million | 6.9 million |
| ADP employment | May | 122,000 | 105,000 |
| Factory orders | April | 4.8% | 1.5% |
| ISM services | May | 54.5% | 53.6% |
| Initial jobless claims | May 30 | 225,000 | 215,000 |
| U.S. productivity | Q1 | 0.3% | 0.8% |
| U.S. employment report | May | 172,000 | 179,000 |
| U.S. unemployment rate | May | 4.3% | 4.3% |
| U.S. hourly wages | May | 0.3% | 0.2% |
| Hourly wages year over year | 3.4% | 3.6% | |
| Consumer credit | April | $20.7B | $22.3B |
Closing Prices for the Week
| Contract | Close |
|---|---|
| Dow Jones Industrials Average | 50,866.78 |
| Nasdaq Composite | 25,709.43 |
| S&P 500 Index | 7,383.74 |
| CBOE Volatility Index | 21.51 |
| S&P GSCI | 693.81 |
| U.S. Dollar Index | 100.069 |
| 10-Year T-Note (Sep ’26) | 109-025 |
| Crude Oil WTI (Jul ’26) | 107.77 |
| Natural Gas (Jul ’26) | 3.040 |
| Gold (Aug ’26) | 4,365.3 |
| Silver (Jul ’26) | 69.103 |
| Corn (Jul ’26) | 417-4 |
| Wheat (Jul ’26) | 580-0 |
| Soybean (Jul ’26) | 1121-4 |
| Coffee (Jul ’26) | 246.50 |
| Sugar #11 (Jul ’26) | 14.14 |
| Cocoa (Jul ’26) | 3,762 |
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