Markets Weekly Wrap: Labor Concerns, Tesla Rebound, Commodity Gains, and Trade Uncertainty

Image Source : Krish Capital Pty Ltd

Index Update: Recent data pointing to a softening U.S. labor market has raised concerns that President Trump’s tariffs may be weighing on economic growth. Major indexes closed lower, with the Nasdaq leading declines, driven by a sharp 14.3% drop in Tesla shares amid a public clash between Trump and Elon Musk. Initial optimism from a Trump-Xi phone call faded as no concrete progress was made on trade talks.

Market Movers: On Thursday, the top gainers were Liminatus Pharma, Inc (+93.55%), followed by ModivCare Inc. (+80.09%). On the contrary BitMine Immersion Technologies, Inc. (-59.21%) and CTRL Group Limited (- 51.95%) declined the most the same day.

Commodities Update: Oil prices climbed this week, with WTI and Brent futures both heading for a 4% weekly gain, supported by optimism around peak seasonal demand and early geopolitical risks, including Canadian wildfires. However, gains were capped as Saudi Arabia signaled a push for higher OPEC+ output and cut July crude prices for Asia, suggesting softer demand in the region. Meanwhile, investors remain attentive to U.S.-China trade developments for their potential impact on oil consumption. Gold rose to a four-week high and silver surged to its highest level since 2012, both benefiting from weaker U.S. economic data and growing expectations of a Fed rate cut. Gold was buoyed by its safe-haven appeal, while silver drew strong support from industrial demand, supply shortages, and technical momentum. Market attention now turns to the U.S. nonfarm payroll report for further economic cues.

Macro Update: The U.S. 10-year Treasury yield steadied around 4.39%, following a volatile week as investors awaited the May jobs report. Recent disappointing economic data, including weak jobless claims and services activity, has raised concerns that Trump's tariffs may be impacting growth. While Trump continues to push for rate cuts, Fed officials remain cautious, seeking more clarity before adjusting policy.

Futures Update: U.S. stock index futures rose on Friday, supported by a rebound in Tesla shares as tensions between CEO Elon Musk and President Donald Trump appeared to ease, and ahead of an important labor market report. The major indexes had ended lower in the previous session after a volatile day, with the Musk-Trump feud weighing on Tesla and tempering optimism over U.S.-China trade talks, despite a positive call between Trump and Chinese President Xi Jinping.

Following the volatility observed in the previous session, stocks continued to fluctuate throughout Thursday's trading. The S&P 500 declined by 31.53 points, or 0.53%, closing at 5,939.29. Technical analysis indicates that the index is approaching a confluence zone that previously acted as resistance before retreating, suggesting a potential period of consolidation ahead of a significant move, as noted in earlier commentary and reflected in chart patterns. Additionally, the formation of a golden cross between key moving averages signals a possible shift toward a more bullish outlook, which could provide short-term support. Support levels are estimated around 5,777, with resistance near 6,047.