Why Wall Street’s Having a Good Day, and You’re Not

by

Ah, what a fine way to wrap up the week! Wall Street, ever the show-off, decided to end the week with a flourish, all thanks to a better-than-expected U.S. jobs report that left investors practically giddy with excitement—because who doesn’t love a good surprise, especially when it involves someone else’s money?

The Dow Jones Industrial Average—because it simply refuses to do things in moderation—jumped a hearty 443 points (1.05%) to take the lead in Friday’s gains. Meanwhile, the S&P 500, ever the overachiever, crept up 1.03%, finishing just above the 6,000 mark for the first time since February (yes, *February*, a mere eon ago). The Nasdaq Composite—oh, it’s just showing off—rose by 1.2%, driven by a delightful rebound in major tech stocks. It seems that Silicon Valley is back to its old tricks, picking up where it left off before reality rudely interrupted.

The S&P 500 and Dow are both up over 1% for the week, while the Nasdaq, feeling particularly chipper, gained more than 2%. A little enthusiasm goes a long way, doesn’t it?

Meanwhile, the U.S. economy added 139,000 jobs in May—an unexpectedly decent number, surpassing predictions of 125,000. The unemployment rate, as always, stayed stubbornly low at 4.2%, while wage growth came in just a tad better than expected (because, apparently, that’s how it works these days). Despite the constant barrage of tariff threats, trade uncertainties, and the ongoing circus at the White House, it’s safe to say that our labor market is putting on quite the brave face. Resilient, you might say? Certainly. But let’s not get too carried away. After all, it’s a Monday tomorrow, and anything could happen.

Trump vs. Powell: A Battle of Epic Proportions (Sort Of)

Now, hold onto your hats, because the plot thickens. Despite all this good news, President Trump, ever the optimist (when it suits him), has decided to once again demand that the Federal Reserve cut interest rates by a full percentage point. He’s called Fed Chair Jerome Powell a ‘drag on the economy’—which, as far as we can tell, is a far more polite term than most of us would use after a few glasses of wine. But let’s not get ahead of ourselves; it seems Powell is unlikely to bow to Trump’s pressure, given that the markets are currently pricing in absolutely zero chance of any rate cuts at the Fed’s June meeting. But, ah, never fear, Trump fans—hope springs eternal. The odds of a September cut dropped from 74% to 62% after Friday’s report. It’s still anyone’s game, folks.

And because no one in Washington is ever truly idle, Trump also announced that U.S.-China trade talks would resume next week in London—presumably at some lavish hotel, with plenty of photo ops. The President’s point man, Treasury Secretary Scott Bessent, will take the reins, so we can all expect a veritable spectacle. But, alas, no one knows what will come of it. It’s almost as if international diplomacy is more of a spectator sport than a serious business.

And next week? Well, next week, brace yourselves. Inflation data and the Fed’s June policy meeting will determine where all the fun goes. Will Wall Street continue to swagger? Or will something unexpected send the whole show crashing down? Stay tuned, my friends—whoever said financial news was boring clearly wasn’t paying attention.

Read More

2025-06-07 00:54