Markets End Mixed: Tech Giants Lift Nasdaq Amid Economic Concerns
Marcket News 05 JUN
On Wednesday, U.S. stock markets closed mixed. The S&P 500 ($SPX) edged up by just +0.01%, reaching a 3.25-month high. The Nasdaq 100 ($IUXX) gained +0.27%, hitting its highest level in 3.5 months, boosted by strength in tech stocks. Meanwhile, the Dow Jones ($DOWI) fell by -0.22%, dragged down by weakness in the energy and consumer sectors.
Economic Pressure: Signs of a Slowdown
Investors responded cautiously to disappointing macroeconomic data. According to ADP, private sector employment in May rose by just 37,000, the smallest increase in two years and well below the forecast of +114,000. At the same time, the ISM Services Index unexpectedly dropped to 49.9, falling below the 50-mark for the first time in 11 months, signaling contraction in the services sector.
Adding to investor unease, the Fed’s Beige Book pointed to slowing economic activity, moderate price increases, and elevated uncertainty among businesses. As a result, the yield on 10-year Treasury notes fell to 4.36%, the lowest in 3.5 weeks, providing support for homebuilding and mortgage-related stocks.
Geopolitical Tensions: U.S.–China Relations in Focus
Geopolitical risks added to market pressure after former U.S. President Donald Trump commented that Chinese President Xi Jinping is “extremely tough to make a deal with,” dampening hopes for a near-term trade resolution between the two countries.
Top Gainers
Despite the weak economic backdrop, several stocks posted strong gains:
ON Semiconductor (ON) rose more than +5% after reporting signs of recovering demand.
Marvell Technology (MRVL) climbed +6%, while NXP Semiconductors (NXPI) gained +5%, lifting the semiconductor sector.
Guidewire Software (GWRE) surged +15% after raising its full-year revenue outlook above analyst expectations.
Homebuilders such as DR Horton (DHI), Lennar (LEN), and PulteGroup (PHM) rose +3–4%, benefiting from falling mortgage rates.
Top Decliners
Several companies saw notable declines:
CrowdStrike (CRWD) fell -5% after a disappointing earnings report and a lowered full-year guidance.
Dollar Tree (DLTR) dropped -8% after issuing a weaker-than-expected 2026 sales forecast.
Tesla (TSLA) lost -3% after reporting a 15% year-over-year drop in China deliveries for May — the eighth consecutive monthly decline.
Energy stocks came under pressure: Chevron (CVX), Valero (VLO), and Marathon Petroleum (MPC) all fell more than -3% following reports that Saudi Arabia may increase oil output to regain market share.
Global Markets
Global equities ended mostly higher:
Euro Stoxx 50 rose +0.55%
Shanghai Composite added +0.42%
Nikkei 225 in Japan gained +0.80%
European sentiment was supported by revised business activity data:
Eurozone PMI for May was adjusted upward to 50.2 (from 49.5)
UK Services PMI rose to 50.9
Investors now await fresh data:
On Thursday, initial jobless claims are expected at 235,000
On Friday, markets will focus on the Non-Farm Payrolls report, with forecasts calling for a +125,000 increase and an unchanged 4.2% unemployment rate
Attention will also be on the upcoming FOMC meeting on June 17–18, where the probability of a rate cut currently stands at just 4%, despite growing evidence of economic softening.