Stock Market Summary – June 06, 2025

This year, international stocks have surpassed US stocks as investors move away from the unpredictability of the American market. The MSCI ACWI ex-USA index has returned 15.7%, while the S&P 500 has only returned 1.5%. This shift has been attributed to concerns over market volatility in the US and uncertainty regarding policies. In the backdrop of this, experts advise diversifying portfolio by adding international stocks but also caution against drastic changes based on short-term market results.

Cryptocurrency exchange and custodian, Gemini, has confidentially filed for an IPO in the US. The company, founded by the Winklevoss twins, hasn’t decided on the number of shares or the pricing terms yet. The move comes after the company’s resolution of a $5 million settlement with the Commodity Futures Trading Commission.

The stock of casual dining chain Texas Roadhouse is seeing a boost with a 1% rise encouraged by UBS analysts’ confidence in sustainable outperformance going forward. The company has seen increased foot traffic and has projected a 5% increase in same-store sales for the second quarter. After weather-induced first quarter struggles, the warmer season signals an increase in business.

On the flip side, Tesla shares fell 14%, wiping off $152 billion of its market cap, after an exchange of insults between Elon Musk and President Donald Trump on social media platforms. Today, the major indexes are up modestly with the Dow Jones Industrial Average increasing by 0.12%, the S&P 500 by 0.47%, and the Nasdaq Composite by 0.97%.

Lastly, Omada Health’s shares surged by 40% in the Nasdaq debut, following the pricing of its stock at $19 per share in its IPO. The company sold approximately 7.9 million shares, raising about $150 million.

The stock market showed dynamic movement, influenced by several factors, including company financial results and various news in the financial world. Petco Health shares experienced a substantial dip, falling by 22% after a disappointing financial report showed more losses and less revenue than anticipated. The electric vehicle company, Tesla, posted gains of over 6%, recovering from a 14% drop the previous day linked to a public feud between CEO Elon Musk and President Donald Trump.

The digital health company, Omada Health, marked its debut on the Nasdaq with a price surge of more than 30%. In contrast, chipmaker Broadcom saw its shares fall by 2.7% on unimpressive free cash flow figures for Q2. Facility management company, ABM Industries, witnessed an 11% drop in shares despite meeting earnings expectations for Q2.

Stablecoin company, Circle Internet Group, enjoyed a boost of 38% following its successful debut on the New York Stock Exchange. Athleisure company Lululemon shares fell by 20% amid disappointing second-quarter outlooks. The apparel company, G-III Apparel Group, saw stock prices collapse by 15% due to weak Q2 earnings guidance.

The electronic signature company, DocuSign, also experienced a dip in share price by 19% after it cut its full-year billings forecast. Shares in customer engagement platforms provider, Braze, fell by 13% following disappointing guidance. The supplier of construction materials, Quanex Building Products, saw a significant uptick of 18% in shares after beating analysts’ estimates.

Meanwhile, amid reports of the Trump administration’s attempts to dissolve the U.S. Department of Education, financial commentator Jim Cramer suggested new investors buy shares in Broadcom due to the strong long-term performance of the stock. He also hinted that Apple’s stock is less risky than he had initially thought.

Despite recent turbulence, the U.S. stock market maintained its momentum, boosted by substantial job gains and strong labor market data. The market rallied on Friday after the release of an update on nonfarm payrolls showed that the U.S. economy added 139,000 jobs in May, indicating that the labor market was healthier than feared.