Stock Market Summary – June 04, 2025

The ongoing trade tariffs have led to increased costs which companies are now transferring to their customers, amidst fears of hitting customer wallets. Currently, around 77% of service firms and 75% of manufacturers have pushed this price hike to their clients as per a survey by the New York Fed. The market saw a partial recovery when President Trump rolled back the levies for three months. Now, the focus is on a July 9 deadline for the return of these suspended tariffs.

The AI chipmaker, Nvidia, has regained its position as the most valuable publicly traded company in the world, bypassing Microsoft with a market cap of $3.45 trillion after a 2.8% rise in shares. Tesla’s shares have dropped more than 3% due to a persistent slump in Europe sales. Meanwhile, despite the tariff-related challenges hitting other retailers, Dollar General raised its full-year forecast amidst increasing customer demands for discounts.

In political news, President Trump discussed ongoing issues in the Ukraine and nuclear talks with Iran during a conversation with Russian leader Vladimir Putin. No immediate resolution to these situations was reached.

Wells Fargo’s $1.95 trillion asset cap has been removed after seven years by the Federal Reserve, signaling a pivotal moment for the bank and potentially more upside for the stock as it can now expand its deposit base and invest more into high-growth lines of business.

Notably performing stocks include cybersecurity firm CrowdStrike, impacted by a disappointing revenue forecast; and Dollar Tree, predicting earnings pressure from ongoing tariffs. Meanwhile, recreational vehicle maker Thor Industries has seen a share increase following better-than-expected quarterly results, and insurance technology provider Guidewire Software’s earnings surpassed Wall Street estimates. Asana’s shares dropped after guidance fell short of expectations, while Constellation Energy suffered a downgrade at Citigroup to neutral. Finally, industrial machinery suppliers Flowserve and Chart Industries saw a decline in their shares amidst news of an all-stock merger deal.

The stock market saw a modest rise, extending the week’s gains despite weak jobs data from the ADP report showing slow hiring growth over the last two years. The report has prompted a call for lower interest rates from former-President Trump. Technology company CrowdStrike stocks dropped by over 4.5% after earnings were released, despite showing strong quarterly results. However, the stock of technology company Broadcom gained a further 1%, following a seven-session winning streak and a record high.

Amazon plans to invest $10 billion in data centers located in North Carolina, aiming to enhance its artificial intelligence (AI) infrastructure. The move falls in line with Amazon’s $100 billion earmarked this year for capital expenditures, the majority of which are AI-related projects. The North Carolina investment is expected to create approximately 500 jobs.

The average 401(k) savings rate has reached a record high, nearing a popular rule of thumb. In 2025 Q1, the savings rate, including employee and employer contributions, hit 14.3% – approaching Fidelity’s recommended 15% savings target.

Microsoft’s LinkedIn CEO Ryan Roslansky will take on an additional role overseeing Office productivity software. Microsoft’s subsidiary LinkedIn has continued to operate independently, generating over $17 billion in revenue over the past year.

Finally, shares of Chinese tea chain Chagee are reportedly undervalued, according to Citi Research. Although the company’s shares have dropped by more than 10% since its public launch in April, the stock recovered by approximately 14% this week. Citi predicts around a 44% potential gain with a price target of $43.70.