Why You Should Be Nervous About the Market Right Now (Even If You’re Not Watching It)

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So here we are again, another Monday, June 2, and the markets are already feeling a bit jittery. Investors, fresh off the weekend, are diving into the new month with all the enthusiasm of a cat seeing a vacuum cleaner. Why? Because the age-old game of U.S.-China trade tensions is still in full swing.

It’s not just a U.S. problem, oh no. Asian and European markets also got in on the fun and closed lower. And, surprise surprise, U.S. stocks didn’t do any better. The Dow Jones Industrial Average took a 160-point nap on the downside. Meanwhile, the S&P 500 pulled back by 0.4%, and Nasdaq couldn’t even manage a polite hello, slipping 0.5% right out of the gate.

Now, let’s take a moment to appreciate the irony here. Despite all the tariff drama of May, the stock market managed to finish the month in a somewhat bullish mood. Imagine being stuck in traffic and somehow arriving at work early – that’s basically what happened in May. The Dow inched up 4%, Nasdaq had a glorious 9% jump (thanks, earnings!), and the S&P 500? Well, it had its best May performance since 1990. Yes, 1990. The year *we* thought dial-up internet was a futuristic marvel. You know, the glory days.

But don’t get too comfortable, folks. The good vibes didn’t last forever. Like your phone battery after 10 hours of TikTok, Bitcoin‘s all-time high above $111k has now slipped down to around $104k. Oh, how the mighty have fallen.

Meanwhile, gold’s having a nice moment, as people rush to the safety of shiny rocks. The U.S. dollar? Not so much. It took a little dip, probably because it saw the gold rising and decided to lie down for a bit.

As if the whole “global markets going wobbly” thing wasn’t enough, oil prices decided to throw a tantrum too. OPEC+ surprised everyone by announcing they’d increase oil output, but not nearly as much as the market had expected. Spoiler alert: prices jumped. You’d think by now they’d just start playing the “expect the unexpected” game, but no, we’re still shocked by everything.

Back to the U.S.-China trade war, which, let’s be honest, is like that TV show that should’ve ended five seasons ago but is somehow still airing. Last week, President Trump made the situation *extra fun* by suggesting tariffs on steel and aluminum could be hiked from 25% to 50%. Yikes. Why? Because he claims China “violated” the trade deal that was signed just a few weeks ago in Switzerland. We can only imagine the level of *polite* diplomatic emails that followed.

Of course, China had to step in and say, “Hey, we’re not the only ones not playing by the rules here.” At this point, it’s hard to keep track of who’s violating what – it’s like trying to figure out who started the food fight in the cafeteria.

But wait, there’s more! The tension is threatening to sink the market into a sea of negativity. While President Trump’s tax bill is the hot topic of the week, tariffs are still looming large like an annoying fly you just can’t swat away. Oh, and did I mention Ukraine’s drone strikes on Russia? Because that’s a thing we need to keep an eye on too. Global chaos, anyone?

But don’t start booking your survivalist bunker just yet. Tom Lee, co-founder of Fundstrat, is feeling optimistic about the S&P 500. Yes, he really is. Lee has a “bullish” outlook and says the index has a *better* shot at hitting 6,600 than it did back in February. For the record, the S&P 500 is currently hanging out around 5,911, up from 4,982 just two months ago. So, there’s that. Let’s all just pretend it’s smooth sailing ahead – after all, what could possibly go wrong?

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2025-06-02 17:28