The May CPI report is set for release on Wednesday. A budget bill takes center stage amid a public disagreement between Trump and Musk. Alphawave surged following news of a planned acquisition by Qualcomm. WPP declined after the CEO announced his resignation. The S&P 500 is now just over 2% above its record February high.
Wall Street regains momentum
Following the turbulence in April triggered by concerns over Donald Trump's tariff policy, the stock market is showing solid recovery. By the end of the week, indices closed on an optimistic note: the S&P 500 (.SPX) surpassed the 6,000-point mark for the first time since late February. The market found support from the latest US jobs report, which helped ease fears of an economic slowdown.
Fed decision: suspense remains
Next week, all eyes will be on the Federal Reserve meeting scheduled for June 17–18. While the benchmark rate is expected to remain unchanged, markets are increasingly pricing in two potential 25 basis-point cuts before year-end.
S&P 500 resumes its climb
Over the past year, the index has gained 2%, but since April 8, it has surged more than 20% from a local low, driven by fears over the potential impact of new tariffs.
Political drama and economic uncertainty
Further volatility stems from Senate discussions of a major bill aimed at cutting taxes and government spending. Market participants are weighing its potential stimulative impact against the risks of ballooning government debt as the budget deficit once again comes into sharp focus.
Musk vs. Trump: break in their alliance
The bill has also sparked a public rift between President Trump and Elon Musk. The once-loyal billionaire harshly criticized the White House's proposals, calling them "disgusting." Trump responded with disappointment at Musk's stance, rattling markets noticeably.
Countdown begins: tariff truce nears expiration
Global markets are holding their breath as the 90-day pause in US tariff actions nears its end. The deadline is July 8, and investors are closely watching developments. President Trump announced a high-level meeting on Monday in London between US officials and Chinese representatives. The goal is to revive stalled trade negotiations.
European markets on standby
Despite a positive trend last week, European equities cooled on Monday. The pullback reflects investor caution ahead of the US-China talks and lower trading volume due to a public holiday.
Key facts on the STOXX 600:
- The index held steady at 553.21 points;
- The previous four sessions ended in gains;
- Markets in Switzerland, Denmark, and Norway were closed due to the Pentecost holiday.
Trade tensions: hope for progress
The London meeting is expected to send a strong signal to markets. Investors are not looking for a final deal just confirmation of progress toward de-escalation. The trade tensions between the US and China, which escalated from tariff disputes to restrictions on strategic exports, have become a major source of global instability.
China signals openness
In response to diplomatic engagement, Beijing announced its readiness to accelerate export licenses for rare earth metals to European Union companies, a gesture that may indicate flexibility on trade.
Auto industry in the crosshairs
The automotive sector, highly sensitive to rare earth supply chains, responded mixedly. Automaker shares showed varied performance, reflecting uncertain expectations about the outcomes of trade talks.
Markets rise on optimism and strong data
European stock indices ended last week in positive territory. Sentiment improved as fears over global trade eased. A strong US jobs report added momentum, beating expectations and calming labor market concerns.
Inflation in focus this week
Investor attention now turns to key US inflation data. Analysts will be looking for signs that Trump's volatile tariff policy is beginning to affect the broader economy by seeping into consumer prices.
Takeoff: Alphawave attracts giant
Shares of British semiconductor firm Alphawave (AWE.L) soared more than 23% after news broke that US-based Qualcomm (QCOM.O) plans to acquire the company for $2.4 billion. The deal stands out as one of the most significant recent events in the tech sector.
Revolution beauty: in crosshairs of potential takeover
Shares of Revolution Beauty (REVB.L) jumped 10.8% following reports that Frasers Group, owned by billionaire Mike Ashley, has begun due diligence on the cosmetics brand.
WPP slips amid leadership shakeup
Major advertising holding company WPP (WPP.L) dropped 1.9% after CEO Mark Read announced his plans to step down by the end of 2025, concluding a seven-year tenure.
