SVET Markets Weekly Update (May 26 — June 1, 2025)
On Week 22, The S&P 500 and Nasdaq gained 6.2% and 9.6% in May — their best since November 2023 — while the Dow rose 3.9%. Crypto was down.
On Monday, equities rallied sharply as easing trade war fears boosted investor sentiment. Trump delayed EU tariffs and expressed optimism about a potential trade deal. Treasury bonds also strengthened after Japan hinted at reducing long-term debt issuance. Tesla jumped as Elon Musk pledged to focus more on his businesses, while Nvidia gained ahead of earnings. Crypto market also advanced, with ETH outperforming BTC.
On Tuesday, equities are down as investors assessed earnings, Fed minutes, and trade tensions before Nvidia’s results. Nvidia rose pre-earnings, seen as a test for AI market optimism. Fed minutes signaled caution amid economic uncertainty, and trade worries flared after Trump’s restrictions on chip software sales to China hit Cadence and Synopsys. Nvidia’s earnings could either revive market momentum or fuel volatility, depending on demand and China-related signals. Crypto markets were steady.
On Wednesday, equities rose slightly as strong earnings from companies like Nvidia and Boeing offset concerns over tariffs and economic data. However, trade uncertainty lingered after a court initially blocked Trump’s tariffs, only for an appeals court to reinstate them later in the day. Navarro stated that if the administration loses court battles over trade tariffs, it will pursue other methods to enforce them. Best Buy lowered its outlook, blaming tariff-related risks, dragging its stock down. Meanwhile, revised GDP data showed the economy shrank 0.2% in Q1, a slight improvement from earlier estimates. Meanwhile, the crypto market moves side-way.
On Thursday, equities rose with Nvidia surging over 6% after strong earnings and an optimistic AI growth forecast. Sentiment improved after a court ruled Trump overstepped his authority in imposing tariffs, easing trade war fears — though appeals may follow. The latest GDP data showed a 0.2% Q1 contraction, better than the initial 0.3% estimate, but corporate profits fell 3.6%. Tech led gains, while consumer staples, utilities, and industrials lagged. Crypto markets declined.
On Friday, stocks fluctuated, ending a turbulent but positive May as investors assessed renewed China trade tensions and softer inflation data. Markets reacted to Trump’s accusations of China violating their trade deal and reports of expanded tech restrictions on Chinese firms. Stalled trade talks and legal doubts over tariffs added to concerns. Cooling inflation data provided some relief. Crypto markets declined.
On Week 23, markets brace for volatility as Trump’s trade war threats resurface. Key focus includes jobs data, PMIs, Fed speeches, and global central bank decisions. Inflation reports from Europe and Asia, plus GDP and trade figures from multiple nations, will also drive sentiment.