Key takeout
- The S&P 500 rose by 1% on Friday, June 6th, highlighting the strength of the labor market despite worries over tariffs.
- Palantir, the data analytics company, rebounded after a dip, driven by strong interest in AI technology.
- Lululemon’s stock took a hit following lowered forecasts from apparel manufacturers, attributing the decline to weaker consumer spending.
The major US stock index ended the trading week on a high note.
According to the Bureau of Labor Statistics, the US economy added 139,000 jobs in May, which exceeded economists’ expectations and eased fears of a slowdown linked to tariffs.
The S&P 500 gained 1%, surpassing the 6,000 mark for the first time since February. Meanwhile, the Dow climbed 1.1%, and the Nasdaq jumped 1.2%.
Shares of Palantir Technologies increased by 6.5%, aligning its performance with the S&P 500. Following a strong demand signal for AI, Palantir reached a record high earlier in the week but had experienced some pullback before Friday’s rise. Positive sentiments in the AI sector were fueled by strong results from Broadcom, which underscored the demand for AI technologies.
Moderna’s stock finished the week up 5.1%. The biotech firm announced FDA approval for its latest Covid-19 vaccine targeting seniors and high-risk groups during the past weekend. Furthermore, Health and Human Services Secretary Robert F. Kennedy Jr. mentioned discussions with Hyundai about a placebo-controlled vaccine trial.
United Airlines revealed a new alliance with Spotify, allowing passengers to access music and podcasts during flights. Consequently, United’s shares increased by 4.8%, while Delta Air Lines also saw a rise of 4.3%.
Tesla’s stock rose by 3.7% as tensions appeared to ease between CEO Elon Musk and President Donald Trump. The earlier conflict had led to a notable drop in EV manufacturer stocks. While analysts generally remain optimistic about Tesla, they noted that ongoing tensions with Trump could complicate the company’s regulatory efforts regarding self-driving technology.
Lululemon Athletica lowered its sales and profit expectations for the current quarter, which resulted in a significant decline in its stock, plummeting 19.8%. This drop reflected broader concerns about consumer spending habits and potential price hikes that manufacturers are considering in response to tariffs. Following the dismal outlook, JPMorgan and UBS adjusted their price targets downwards for Lululemon.
Broadcom reported solid results for the second quarter, closely matching analyst forecasts. Significant year-over-year growth in AI semiconductor revenue helped the company reach a record $15 billion in quarterly revenue. However, shares dipped by 5%, pulling back from previous highs before the earnings report.
Mosaic, a firm specializing in fertilizers and agriculture, reduced its phosphate production forecast for 2025 due to operational challenges at its US facilities, which caused its shares to decline by 4.4%.
