Good morning. U.S. equities closed out last week on a strong note, rising across the board Friday after the May jobs report came in ahead of expectations. Nonfarm payrolls rose by 139,000, slightly above forecasts, while the unemployment rate held steady at 4.2% and average hourly earnings beat consensus at +0.4% month-over-month. The upbeat tone carried through the major averages, with all 11 S&P sectors finishing higher and the Nasdaq leading weekly gains at +2.18%.

Bond yields jumped following the data, pushing back expectations for a near-term Fed rate cut. The 10-year closed at 4.5% and the 2-year at 4.04%. Meanwhile, the IPO market continues to warm up, with recent blockbuster debuts from Circle and CoreWeave, and fresh listings expected from Chime and Voyager Technologies later this week.

Investors now turn their attention to geopolitical flashpoints, as Trump deploys the National Guard to Los Angeles over Newsom’s objections, and Chinese and U.S. officials prepare for trade talks in London. Europe’s focus remains on Ukraine, with Russia launching a new summer offensive. All eyes will soon shift back to inflation with CPI due later this week.

Putin Launches New Offensive in Ukraine
The Economist reports that Russia has begun a broad summer offensive in eastern Ukraine aimed at breaking Ukrainian defenses and forcing political concessions. The escalation comes amid concerns about waning Western support.
Read Full Story

China’s Deflation Deepens as Prices Slide Again in May
The Wall Street Journal highlights another month of falling prices in China, with factory-gate deflation accelerating and consumer prices flat. The data underscores persistent economic weakness and may increase pressure on Beijing to ease further.
Read Full Story

U.S.-China Trade Talks Set for London
CNBC reports that U.S. and Chinese trade officials will meet in London this week for a new round of negotiations. The talks come amid cautious optimism following last week's Trump–Xi phone call and a pause in tariff escalations.
Read Full Story

Trump Tax Bill Heads to Senate After House Win
The Wall Street Journal covers the next stage of Trump’s sweeping tax legislation as it moves to the Senate. Key sticking points remain around EV credits, capital gains treatment, and the treatment of foundations.
Read Full Story

Can We Still Trust the Data? Fed Policy Hinges on Fragile Stats
MarketWatch questions whether U.S. economic data is reliable enough to guide Fed policy. With frequent revisions and statistical noise, some strategists worry the central bank may be flying blind heading into a possible rate-cutting cycle.
Read Full Story

First ‘Liberation Day’ Casualty Reports Earnings This Week
MarketWatch previews earnings from a multinational impacted by recent tariffs, one of the first to report since the Liberation Day tariff regime was rolled back. Investors are watching closely for margin compression and supply chain disruption.
Read Full Story

Trump Sends National Guard to LA Over State Objections
Bloomberg reports that President Trump has authorized the deployment of the National Guard to Los Angeles following a string of protests and unrest. California Governor Gavin Newsom called the move “unauthorized and inflammatory.”
Read Full Story

Stocks rallied Friday after a better-than-expected May jobs report reassured investors about the resilience of the U.S. labor market. Nonfarm payrolls increased by 139,000 (vs. 130,000 est.), while unemployment held steady at 4.2% and average hourly earnings rose 0.4%—the largest monthly gain in three months. While revisions to prior months shaved 95,000 jobs off the March and April totals, markets largely looked past the downgrade.

All eleven S&P 500 sectors finished the day in positive territory, led by energy and communication services. Bond yields spiked following the report, with the 10-year Treasury climbing more than 13 basis points to 4.5% and the 2-year up 11.7bps to 4.04%, effectively pricing out hopes of a summer rate cut. The CBOE Volatility Index (VIX) dropped below 17, back to March lows.

The broader market also digested the final stretch of Q1 earnings, as Broadcom and Lululemon reported modest beats. With 78% of S&P 500 companies topping earnings estimates this season and average upside surprises near 8%, the index is on track for 13% Q1 earnings growth. Full-year growth is still projected near 9%, despite downward revisions for upcoming quarters.

In commodities, WTI crude jumped 1.9% to $64.58 per barrel, while gold fell 0.84% to $3,346.60. Silver hit a 13-year high during the week but ended lower on Friday. The U.S. dollar strengthened following the jobs report, gaining 0.95% against the yen and pushing the euro back below $1.14.

Markets enter the new week with momentum, but macro crosscurrents continue to gather. Strong earnings and a stable labor market provide a solid foundation, yet renewed geopolitical risks, lingering trade uncertainty, and doubts about the quality of economic data could complicate the Fed’s path. With CPI and key central bank meetings on deck, volatility may return quickly.