📈 Weekly Market Recap: June 2–6, 2025

✅ Short-Term Breadth Signal: GREEN LIGHT

Market breadth is trending higher and has crossed above its 5-day moving average—a reliable risk-on signal for swing traders.

The simplest way to capitalize:
Go long the major leveraged ETFs and ride the wave until breadth closes back below the 5-day moving average.

Suggested ETFs for momentum exposure:

TQQQ – Nasdaq 100
SPXL – S&P 500
TNA – Russell 2000
SOXL – Semis
FNGU – Big-cap tech/growth
FAS – Financials

🟢 Momentum favors the bold—just don’t overstay the party once breadth flips.

◀️ Monday – Steel Tariffs & AI Deals

Markets opened the week strong as investors looked ahead to trade negotiations and Fed signals following a strong May. Steel stocks surged after Trump raised tariffs to 50%, rattling automakers and construction firms.

Fed Chair Jerome Powell avoided direct commentary on rate policy, while Fed Governor Christopher Waller floated the idea of a rate cut later this year.
Applied Digital exploded higher after announcing a $7B AI infrastructure deal with CoreWeave.
Meta revealed it’s moving toward fully AI-generated ads, kicking off the week with an aggressive innovation push.

🌏️ Tuesday – Jobs Beat, Fed Patience, and Energy Deals

Markets pushed higher again as U.S. jobs data beat expectations and earnings continued to impress. The Fed reiterated its cautious approach.

Meta signed a 20-year nuclear energy deal with Constellation Energy to power its data centers—possibly setting a trend for AI compute firms.
Fed Governor Lisa Cook warned that higher tariffs could lead to a resurgence in inflation.
Elon Musk went on the offensive, calling Trump’s new tax bill a “disgusting abomination,” raising new concerns over fiscal discipline as Senate Republicans weighed its implications.

⚡️ Wednesday – Slower Hiring, AI Friction, and Infrastructure Spend

A relatively quiet day for equities. ADP data showed a slowdown in private-sector hiring, setting the stage for Friday’s big payroll number.

Reddit sued Anthropic, alleging unauthorized use of Reddit data to train its AI. Anthropic confirmed that Claude was partially trained on Reddit content.
Apple and Alibaba hit delays in rolling out their AI tools in China due to regulatory pushback.
Amazon has committed $10 billion to expand its cloud and AI infrastructure footprint in North Carolina.

🐂 Thursday – Tesla Tanks, Circle Soars

Markets pulled back after a chaotic session led by a sharp selloff in Tesla.

Tesla dropped 14% as Elon Musk’s public spat with Trump over the GOP spending bill dominated headlines.
Broadcom beat earnings but failed to impress—stock slipped modestly.
Circle jumped nearly 40% on IPO debut, drawing attention back to crypto infrastructure.
The U.S. trade deficit narrowed in April thanks to tariff shifts.
Boeing settled its long-running $1.1B DOJ case tied to the 737 Max crashes.

💚 Friday – S&P 6,000 Breakout on Jobs Beat

Markets ripped higher after a strong May jobs report showed 139,000 new jobs and unemployment holding at 4.2%.

Trump called for a full percentage point rate cut, adding pressure on the Fed.
Space stocks rallied after Trump floated limiting federal contracts to SpaceX during his feud with Musk.
S&P Global’s site crashed as traders rushed to see index changes—Robinhood was among the names rumored to be added.
Ford, GM, and Stellantis secured rare-earth export licenses from China after a Trump–Xi phone call, easing supply chain concerns.