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Another Equity Dip is Bought but Dollar, Treasuries, Oil Volatile.
RiskReversal Recap: June 2, 2025
RiskReversal Media
June 02, 2025
MARKET WRAP
The new week started much the same as last week with some negative sentiment sending stocks lower at the open only to find buyers mid day. However, the dollar was lower once again while treasury yields were higher. Elsewhere, oil was sharply higher as was gold.
On the Day: SPX +0.4%, QQQ +0.7% and IWM +0.2%. Gold up 2.7%, Oil up 3.7%, the US10Y now 4.44% while DXY is 98.68 (its lowest level since April).
After hours: SPY is adding slightly to its gain after hours.
MRKT Call: Carter joins to talk year end price targets, SPX, Gold, Bitcoin, Broadcom and more.
RiskReversal Pod: Guy and Dan are joined by Sarah Levy, CEO of Betterment, to discuss the wealth management company's expansion, and AI in the finance sector within the world of regulatory compliance.
MRKT MATRIX: TODAY’S TOP STORIES
S&P 500 ticks higher to start June trading as investors look past rising global trade tensions (CNBC)
Buyers’ Strike Rocks US Long Bond as DoubleLine, Pimco Stay Away (Bloomberg)
JPMorgan Strategists Warn US Stock Rally at Risk From Stagflation (Bloomberg)
Wall Street Sees Deeper Dollar Rout as Currency Nears 2023 Low (Bloomberg)
China Accuses US of Violating Trade Deal, Vows Firm Response (Bloomberg)
Meta Aims to Fully Automate Ad Creation Using AI (WSJ)
Why Nvidia Can’t Just Quit China (WSJ)
Apple’s China rival Xiaomi still has major upside, analysts say, even after record earnings (CNBC)
WHAT’S NEXT?
Stocks kicked off the new week (and month) with a similar pattern to what we’ve seen a lot over the past two weeks, namely another down open became a green close. The day began in a sour mood with China now accusing the US of violating the trade deal, a turnabout from last week’s accusations the other way. Fresh headlines helped later, with more promises that direct talks with China are still imminent. That was followed by proclamation that other countries have until Wednesday to submit their trade "offers” to have favorable treatment, while reiterating that July 8th is still the last day to finalize.
Traders took these midday headlines to be a positive sign. However, it may inject a bit of uncertainty midweek. Will we hear if countries have or haven’t submitted proposals by Wednesday? As of now traders aren’t pricing it as any sort of new deadline. There is slightly higher volatility for Friday’s jobs number, but no big changes in vol pricing before that. We’ll see. For now, expect more tariff headlines all week, and perhaps similar “ho-hum” reactions to what we’ve seen recently until some concrete news emerges either way. But do keep an eye on what’s happening to the dollar, yields etc. as they may be reacting before equities.
Tomorrow we kick off this week’s jobs data in the form of the JOLTS numberWe also get earnings from DG before the open with CRWD, HPE and others after the close.
Tuesday June 3rd:
Pre-market: DG 8%
10am - Factory Orders
10am - JOLTS Job Openings
After-hours: CRWD 7%, HPE 8%
TODAY’S EPISODES
Watch MRKT Call’s newest episode: Carter Worth: What The Charts Are Telling Us
The latest tariff news and how market participants are discounting those headlines for now. Carter joins to talk year end price targets, SPX, Gold, Bitcoin, Broadcom and more. |
Analysis: SPX, GLD, BTC, TLT, XLE, AVGO, PLTR, GM, F, NFLX
Your Questions Answered:
Thoughts on REGN for a bounce?
Will NFLX ever stop going up?
Learn more about our sponsor, MoneyLion.
Watch RiskReversal Podcast’s newest episode: Eat Your Vegetables & Skip the Hype: Calm Investing in a Crazy Market with Betterment CEO Sarah Levy
Sarah Levy, CEO of Betterment, discusses the wealth management company's expansion, and AI in the finance sector within the world of regulatory compliance. |
Dan Nathan and Guy Adami are joined by Sarah Levy, CEO of Betterment, to discuss the wealth management company's expansion and technological integration. Betterment, known for its retail investment and savings platform, advisor technology, and retirement services, manages $56 billion in assets with about a million customers. Sarah delves into the impact of automation and AI in the finance sector, focusing on enhancing efficiency while maintaining regulatory compliance. They also talk about Betterment's growth strategy, including recent acquisitions, and the company's commitment to democratizing financial advice. Sarah emphasizes the importance of long-term diversification, tax optimization, and financial literacy, aiming to serve a wider range of customers by offering sophisticated yet accessible financial solutions.
