What Moved The Markets This Week 📈
ECB Cuts Interest Rates, New Stock Exchange In Texas, Payrolls Jump 272K, AMD & Intel Unveil New AI Chips, Nvidia's Market Cap Surpasses Apple, and CRWD + LULU + GTLB Earnings
Sunday Morning Markets
Trading Week 23, covering Monday, Jun 3 through Friday, Jun 7. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
US Markets 🇺🇸
Payrolls jump 272,000 in May, unemployment rises to 4%
Biden signs Executive Order to limit border crossings
Spotify raises premium subscription prices
Earnings from Crowdstrike, GitLab, Lululemon
Global Markets 🌏
ECB & BOC both reduce interest rates
OPEC+ extends oil production cuts
Modi reelected for a third term in India
Tech ⚡
AMD, Intel unveil new line of AI chips
Zoox to expand to Austin, Miami
SpaceX successfully brings Starship back to earth
US Markets 🇺🇸
US adds far more jobs than expected in May with payrolls growing 272K, well above consensus estimates of 190K. The report also showed unemployment ticking up to 4%, while average wages jumped 0.4%.
Job openings drop to 8.06 million in April to its lowest in three years as the labor market loses steam. The report suggests that there are 1.24 openings for every unemployed person, a ratio that topped out at 2:1 during the pandemic.
Factory activity and construction spending both fall in May as the ISM Manufacturing PMI fell to 48.7 (est 49.6). However, the Non-Manufacturing PMI rebounded to 53.8 (est 50.8) as the service sector snapped back into growth.
Biden issues Executive Order to limit border crossings in a last-ditch effort to alleviate the issue ahead of the presidential election. The EO effectively bans migrants seeking asylum if they cross the border illegally.
Spotify raises prices of premium subscription plans, its second price hike this year. The ‘individual’ plan will now cost $12 per month while the ‘duo’ and ‘family’ plans will rise to $17 and $20 per month, respectively.
GameStop soars after ‘Roaring Kitty’ reveals bet showing a $175M position in GameStop. At one point GME shares were up 100% on the week before falling hard after the company announced a share offering.
TXSE Group to launch new stock exchange in Texas as the Blackrock and Citadel-backed startup raises $120 million. TXSE aims to start facilitating trades in 2025 and host its first listing in 2026.
Global Markets 🌏
The European Central Bank cuts interest rates for the first time since 2019, bringing its key rate down to 3.75%. ECB President Lagarde added “there’s a strong likelihood” that more rate cuts are ahead.
Bank of Canada reduces rates to 4.75%, becoming the first G7 central bank to ease its policy. Governor Tiff Macklem added that it would be “reasonable to expect further cuts,” if progress continues.
OPEC+ agrees to extend its production cuts as the group aims to bolster prices and avoid a global surplus. The group has longstanding official reductions of 3.66 million barrels a day.
China’s exports grow nearly 8% in May according to customs data, coming in ahead of estimates. Imports on the other hand grew a measly 1.8% due to weak domestic demand, missing the forecasted 4.2% growth.
India reelected Narendra Modi for a third term but his party, Bharatiya Janata, fell short of an outright majority in the country’s lower house of Parliament. India’s Nifty 50 index fell over 8% immediately following the news.
Claudia Sheinbaum elected as Mexico’s new president, becoming the country’s first-ever female leader. Sheinbaum is the former mayor of Mexico City and has pledged to continue with AMLO’s policies.
Tech ⚡
AMD and Intel both unveil new AI chips amid intensifying competition in the space. A few days prior, Nvidia revealed its next generation of AI chips named ‘Rubin’ to succeed its ‘Blackwell’ model.
Nvidia passes Apple in market cap to become the second-most valuable public company. Nvidia's shares have surged nearly 10x since October 2022, driven by global demand for their AI chips.
Regulators to open probes into Nvidia, Microsoft and OpenAI on antitrust grounds. The FTC and DOJ will examine the companies’ influence on the AI industry and will focus on their conduct, rather than M&A.
Amazon’s Zoox to test self-driving cars in Austin and Miami this summer. The expansion will mark Zoox’s fourth and fifth test cities, following Las Vegas, San Francisco, and Seattle.
Databricks to buy Tabular in a bid for AI clients in a deal worth between $1 and $2 billion. Tabular is a data-management startup that helps companies use a variety of open-source data formats.
Boeing’s Starliner successfully launches NASA astronauts into space, before docking at the International Space Station on Thursday. The two astronauts, Barry Wilmore and Sunita Williams, will remain on the ISS for a week.
SpaceX brings its Starship rocket back to Earth for the first time, a major step towards landing on-site in Texas. SpaceX aims to use Starship to launch larger Starlink satellites, and eventually make life multi-planetary.
Shopify acquires popular ‘Checkout Blocks’ app which allows Shopify Plus merchants to make no-code customizations in their checkout to enhance customer experience and boost sales.
Earnings Reports 💰
See other breakdowns on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
CN - Markets Closed 🇨🇳
Tuesday
CA - Building Permits 🇨🇦
UK - Employment Report 🇬🇧
CN - CPI Inflation 🇨🇳
CN - PPI Inflation 🇨🇳
Earnings: Oracle 💰
Wednesday
US - FOMC Interest Rate 🇺🇸
US - CPI Inflation 🇺🇸
UK - GDP Growth 🇬🇧
DE - CPI Inflation 🇩🇪
Earnings: Broadcom💰
Thursday
US - Jobless Claims 🇺🇸
US - PPI Inflation 🇺🇸
EU - Industrial Production 🇪🇺
JP - BOJ Interest Rate 🇯🇵
Earnings: Adobe, RH💰
Friday
US - Fed Monetary Policy Report 🇺🇸
US - UMich Inflation Expectations 🇺🇸
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