Stocks Climb on Positive Trade Headlines

 

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

6.    Major indexes weekly chart and technical support & resistance levels

U.S.

For the week of Jun 6, U.S. indexes closed higher for the second week in a row. The Nasdaq Composite (COMP, up 2.18%) and Dow Jones Industrial Average (DJI, up 1.17%) both advanced to join the S&P 500 Index(SPX) in positive territory for the year.

Strong earnings results from AI-related stocks, Trump and China’s Xi held a phone call that “resulted in a very positive conclusion for both countries”, according to a social media post from Trump, gave investors some hope that the trade issues could be resolved. Refer to below major indexes weekly performance tables.

Key highlights for the week and next: 

1.    Despite some signs of cooling, the May jobs data came in better than expected, easing concerns about a sharp economic slowdown amid ongoing tariff headwinds. As reported on Friday, the U.S. economy added 139k jobs in May, slightly above expectations, while the unemployment rate held steady at 4.2%. 

2.    Q1 earnings season wrap up, underscoring corporate strength. SPX companies delivered solid results, growing profits 12.5% year-over-year, the third quarter of double-digit growth in the past four. While earnings growth estimates for 2025 have been revised down from 14% to 8.5%, the 2026 outlook remains steady, pointing to the potential for reacceleration. 

3.    Going forward, trade developments- Jul 9 expiration of the 90-day pause on “reciprocal” tariff rates and Aug 12 end of the China’s 90-day pause potential catalysts for volatility. 

4.    Market will also focus on Fed meeting on June 18. The probability of a rate cut has now fallen to near zero, as the economy continues to chug along and Fed officials are taking a wait-and-see approach. 

5.    Trump’s “Big Beautiful Bill” passed in the House and has now moved to the Senate. The bill includes a boost in the debt ceiling. 

SPX sectors in play

Eight out of 11 SPX sectors recorded weekly losses, Technology (XLK) and Communication Services(XLC) led the gains while Consumer Discretionary(XLY) and Consumer Staples(XLP) lagged. Refer to below SPX sectors ETF weekly performance table.

Information technology stocks outperformed, due in part to upbeat sentiment around artificial intelligence (AI)-related stocks in the wake of several positive corporate earnings reports. News that Facebook parent Meta Platforms(META) is entering a 20-year contract with Constellation Energy to power its AI operations also appeared to help boost sentiment in the space.

Indexes technical levels

The major indexes have recorded 2^nd weekly gains in a row. All three major US indexes have returned positive YTD now. SPX and COMP moved up from their three-week sideways consolidation range which is bullish, DJI still within its four-week range but closed highest in the period.  Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Mainland China stock markets advanced as a batch of weaker-than-expected economic indicators raised hopes that the government would roll out more stimulus. The Shanghai Composite Index(SSE) added 1.13% while the blue-chip CSI 300 rose 0.88%. In Hong Kong, the benchmark Hang Seng Index gained 2.16%. (refer to the above weekly performance table).

Key highlights for the week and outlook for China/HK:

1.    A private survey showed that China’s manufacturing sector suffered its biggest decline since September 2022, reflecting the impact of U.S. tariffs on smaller exporters. The Caixin manufacturing PMI fell to 48.3 in May from April’s 50.4 reading, trailing economists’ forecasts and falling below the 50 mark that separates growth from contraction. The Caixin services PMI rose to 51.1 in May from 50.7 in April. 

2.    The Caixin data were far weaker than official indicators released the prior weekend. China’s official PMI ticked up to 49.5 in May from 49.0 in April, likely reflecting the temporary reprieve on U.S. tariffs. China and the U.S. reached an agreement on May 12 to reduce tariffs for 90 days to allow for further talks on a lasting deal. The official nonmanufacturing PMI, which includes services and construction, fell to 50.3 from 50.4. 

3.    The contraction in manufacturing revealed in the Caixin survey supported the view that Beijing needs to roll out more incentives to boost consumption as it tries to offset the impact of U.S. tariff hikes. Last month, China’s central bank announced a slew of easing measures, including cutting the seven-day reverse repurchase rate, a key policy rate, and the reserve requirement ratio for banks. Expectations that a spiraling trade war with the U.S. would spur Beijing to deploy more stimulus have driven Chinese stocks in recent weeks, though hopes for more support have been tempered as both countries work toward a broader agreement.

Refer to below .HSI stocks top 40 performance of the week(please refer to my FB group for full list).

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) added 1.02% to close at 3934.29 point this week. The indexed continues to crawling higher. Overall trend is upside.

Top weekly gainers including CDL (+8.47%), YZJ Ship(+8.02%) and UOL(+7.01%) Refer to below table for STI index stocks weekly performance.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.