Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – June 01, 2025 at 07:00 AM

This week, the S&P 500 remained flat and continued its 6% May gain as investors continued to look past trade policy confusion. The S&P 500 slightly went down by 0.01% to end at 5,911.69, while the Nasdaq Composite dipped 0.32% to 19,113.77 and the Dow Jones Industrial Average added 54.34 points, or 0.13%, to finish at 42,270.07.

While the trading session marked the end of a successful trading month, especially following a trade deal announcement between the U.S. and the U.K., investors are still expressing uncertainty around the U.S.-China trade talks. Legal issues and potential recession risks tied to tariffs and U.S trade policy changes remain significant concerns.

Several stocks were notably affected during the trading week. Nvidia was the star of this week, raising its price target to $170 per share from $165. Despite the export restrictions on artificial intelligence chips in China, Nvidia shares surged more than 3% this week. However, Salesforce’s stock fell due to arguments that CEO Marc Benioff is focusing too much on AI rather than the company’s core business, negatively affecting its shares.

Inflation continued to cool in April according to the Personal Consumption Expenditures index. However, there is still concern around the tariff levels that could rekindle inflation in the future. The Federal Reserve has expressed a need for a cautious approach to monetary policy should inflation increase.

In summary, there was a 6.2% increase for the S&P 500, a 9.6% increase for the Nasdaq, and a 3.9% gain for the Dow this May. The tech-heavy Nasdaq advanced 2%, while the S&P 500 and Dow rose by 1.9% and 1.6% respectively this week.

The stock market has seen a significant comeback recently, with the S&P 500 rallying roughly 6% and the Nasdaq Composite climbing over 9% in this month. Tech stocks, especially those tied to artificial intelligence, significantly benefited, with Nvidia topping the gainers after rallying by more than 23% in May due to strong results. However, the rally coupled with factors such as rising tariffs and jobless claims has raised concerns of investor complacency, with the S&P 500 currently trading at a forward price-to-earnings multiple of roughly 21.

Trade tensions, particularly between the U.S. and China, have also seen an uptick, casting a shadow on the stock market. The future performance of equity markets may largely depend on resilient consumer spending and the employment picture. Economists predict that the May jobs report will indicate the addition of 125,000 jobs, a drop from the 177,000 jobs added in April. A weaker-than-expected report could shake investor confidence.

The Dow, S&P, and Nasdaq closed at 42,098.70, 5,888.55, and 19,100.94 respectively. Okta shares dropped more than 16% due to global economic uncertainty. On the upside, Abercrombie & Fitch and Dick’s Sporting Goods saw a surge in their stock prices by more than 14% and nearly 2% respectively following earning reports.

Unity Software also witnessed a significant boost, with its share price soaring 25.7% within a week, largely driven by a bullish coverage from Jeffries who upgraded the stock from hold to buy. This surge was facilitated by the overall positive trend in the broader market which advanced by 1.9%. Unity has been focusing on its new Vector digital advertising platform which utilizes AI for better ad targeting, which could potentially help attract more customers and drive sales growth in the future.