Weekly Market Performance — June 5, 2026

LPL Research provides its Weekly Market Performance for the week of June 1, 2026. Stocks started June on a volatile footing, ending Wall Street’s nine-week winning streak amid a mix of geopolitical tensions, shifting interest rate expectations, and cooling artificial intelligence (AI) driven momentum. U.S. equities initially pushed to new highs on tech strength but reversed as rising oil prices, higher Treasury yields, and disappointing corporate forecasts (relative to high expectations) dampened sentiment. International markets followed a similar pattern, with Europe pressured by weaker economic data and rate hike speculation, and Asia weighed down by fading tech optimism. Meanwhile, bond yields climbed on stronger-than-expected economic data, and commodities were mixed.

Stock Index Performance

S&P 500 Index Sectors

Fixed Income and Commodities

Source: LPL Research, Bloomberg 6/5/26 @3:35 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.

U.S. and International Equities

U.S. Equities: Five days of relatively choppy trading left Wall Street on track to snap a historic nine-week winning streak. After closing out strong monthly gains for May, the S&P 500 faced a few moving pieces to start the month of June between a ramp in hostilities in the Middle East and crosscurrents in the AI theme. Early in the week, major averages picked up right where they left off last month, scoring with fresh records on the back of tech shares in response to NVIDIA (NVDIA) CEO Jensen Huang announcing the chipmaking giant’s move into the PC market, while also dismissing software disruption concerns. However, rising oil prices and Treasury yields placed an overhang on equities on renewed negotiation uncertainty and a brief escalation in Israeli-Hezbollah hostilities in Lebanon, while U.S.-Iran strikes tested the temporary ceasefire again.

Nonetheless, corporate updates may have been the biggest directional driver. Shares of Alphabet (GOOG/L) dropped after the Google-parent company announced an $80 billion equity raise to fund AI spending plans. In the following sessions, chipmakers succumbed to downside pressure after their outsized rally in response to semiconductor maker Broadcom’s (AVGO) revenue forecast falling just shy of Wall Street’s lofty expectations — sparking concerns that the latest AI rally may have run too hard. Stocks went on to end the week on a risk-off note as a result of the colliding dynamics, with additional pressure from rate hike expectations after May payrolls data cruised past consensus forecasts. 

International Equities: The STOXX 600 European regional index ended modestly lower as rising crude prices kept a lid on risk taking to start the month of June. Among regional headlines, hawkish-leaning European Central Bank commentary combined with flash consumer inflation data indicating accelerating price pressures last month, broadly dampened sentiment. Investors also assessed a fresh potential headwind from a proposed 10% U.S. levy on imports from the U.K. and the European Union. Elsewhere, consumer discretionary names outperformed on positive consumer spending takeaways from earnings reports, while the heavyweight banking sector lagged after multiple institutions reportedly suspended account opening for mainland China clients as a part of regulators’ cross-border crackdown.

On the other side of the globe, major Asian markets ended mostly lower. South Korea led declines as dented AI sentiment on Friday poured cold water on the KOSPI’s red-hot chip-fueled rally, wiping out weekly gains. Moves elsewhere were more measured in comparison. Taiwan edged higher despite Friday’s selling, while Japanese benchmarks ended mixed as the Nikkei clung to mid-week tech gains and the Topix ticked lower as U.S.-Iran deal uncertainty continued to weigh on exporters. Greater China reversed gains driven by tech excitement for Tencent’s potential AI agent for the popular WeChat service after the project met regulatory hurdles, while banks dropped on developments in authorities’ cross-border crackdown.

Fixed Income, Currency, and Commodity Markets

Fixed Income: Core bonds, as measured by the Bloomberg Aggregate Index, traded lower this week. Within Treasury markets, the week was bookended by a rise in yields as the curve generally continued to be directionally driven by rising oil prices amid flaring tensions around the Middle East. However, despite crude prices cooling heading into the weekend, Friday’s Treasury selloff was particularly notable as shorter-dated yields jumped as much as 13 basis points (0.13%) as market pricing for Federal Reserve (Fed) rate hikes received a jolt from much stronger than expected May payrolls data. Rate hike expectations in global markets also continued to underpin yields. In our view, given that longer-term inflation expectations remain well anchored, the Fed is not likely behind the curve. While market pricing for a potential rate hike received another boost Friday, the bar for central bankers to tighten monetary policy is likely higher than it appears, and market pricing in the Treasury market may currently be too hawkish.  

Commodities and Currencies: The broader commodity complex traded lower, erasing fairly muted weekly gains on Friday. With geopolitical tensions in the Persian Gulf and U.S.-Iran peace talks still front and center across asset classes, crude oil prices continued to dominate headlines for the complex. West Texas Intermediate (WTI) printed a healthy advance in response to clashes in the Middle East — even after trimming gains to end the week on remarks from Washington that negotiations with Tehran are progressing well. But Friday’s losses were limited as investors still await concrete progress, and the Strait of Hormuz remains closed. While oil was still the focal point for market chatter, a drop in precious metals weighed on the complex. Gold deepened weekly losses as a potential rate hike would pose a headwind for the non-yielding yellow metal, while silver posted even sharper losses. In currencies, the U.S. dollar index rallied back near 100 into the weekend on rate hike speculation while the euro weakened as investors flocked to the greenback.  

Economic Weekly Roundup

Highlights from Friday’s Payrolls Report 

• Job demand was especially strong in healthcare and leisure and hospitality sectors. Payrolls contracted in residential construction, financial services, and retail trade.
• Payroll activity was mixed in May as retail trade shed workers across most subcategories. But relative to longer trends, retailers have kept payrolls stable at roughly 15.5 million across the country.
• The unemployment rate was unchanged at 4.3% and remained in a narrow range of 4.3% to 4.5% since mid-2025.
• The labor force participation rate held at 61.8% in May, and the employment-population ratio changed little at 59.2%. These measures showed little change over the year, after accounting for annual population control adjustments.
• Financial activities employment declined by 22,000 in May and is down by 107,000 since a recent peak in May 2025.
• Over the year, average hourly earnings have increased by 3.4%, not quite the pace of inflation in recent months. We could expect impacts from energy market volatility to seep into labor demand if the effects of the Iran conflict linger through the summer.
• Bottom Line: Most indicators are rangebound as the labor market holds steady. If we stay in this low-hire, low-fire environment, we should expect unemployment to be range bound. However, if we see a slowdown in sales and business activity like we expect next quarter, we should expect unemployment to tick upward.

Beige Book Gives Mixed Signals. The May 2026 installment, one of eight Federal Reserve Beige Book editions scheduled for this year, is becoming increasingly valuable as central bankers struggle to form a reasonable outlook for the economy.

• Wage growth is largely in line with inflation, giving consumers the ability to keep up with price changes, at least for the time being.
• Data center demand is supporting hirings. Outside that category, the broad job market remains in a low-hire, low-fire environment.
• Firms are temporarily absorbing higher input costs to preserve customer demand. This occurs when businesses believe the consumer is on weaker footing.
• Although delinquencies have mostly remained stable, several contacts reported early signs of deterioration. 
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Bottom Line: We may be at a crossroads, as credit conditions appear to be weakening. Although the economy continues to perform well, certain variables remain too fragile to withstand additional geopolitical shocks beyond what they have already endured. Business investment will likely keep the economy growing 1.8% annualized in Q2 and the upcoming jobs report will likely show firms added 50,000 to their payrolls. One growing concern is the rising unemployment rate for workers with minimal experience.

The Week Ahead

The following economic data is slated for the week ahead: 

• Monday: New York Fed One-Year Inflation Expectations (May)
• Tuesday: NFIB Small Business Optimism (May), ADP Weekly Employment Change (May 23), Trade Balance (Apr), Existing Home Sales (May), Wholesale Inventories (Apr final), Wholesale Trade Sales (Apr)
• Wednesday: MBA Mortgage Applications (June 5), Headline and Core CPI (May), Real Average Hourly Earnings (May), Federal Budget Balance (May)
• Thursday: Initial Jobless Claims (Jun 6), Continuing Claims (May 30), Headline and Core PPI (May), Household Change in Net Worth (1Q)
• Friday: University of Michigan Consumer Sentiment Report (June preliminary)