Weekly Market Update – June 2, 2025

Price Return Last Week

S&P 500 +1.9% S&P Mid Cap +0.8% Russell 2000 +1.3%

MSCI EAFE +0.9% MSCI EM (1.1%)

10 Yr US Treasury Rate – fell from 4.51% to 4.42%

Source: Refinitiv Eikon

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Recent News

Tariff Ruling – A U.S. federal court blocked most of President Trump’s “Liberation Day” tariffs on Wednesday citing their unlawfulness as they were implemented using a rule meant to be used only in national emergencies.  However, a federal appeals court temporarily reinstated most of the tariffs a day later as they consider an appeal by the government.  Sector-specific tariffs, such as those on automobiles, steel, and aluminum, were not addressed in either ruling.

Source: Thomson Reuters

Steel and Aluminum Tariffs – On Friday, President Trump announced that he would impose additional tariffs on steel and aluminum imports to raise the total tariff percentage to 50%.  The announcement was made in Pittsburgh after the administration blessed Nippon Steel’s proposed acquisition of U.S. Steel.  To gain deal approval Nippon Steel has pledged to build a new steel mill and double its spending plan.  Steel prices surged from roughly $780/ton to $920/ton after the tariff announcement.

Source: Investor’s Business Daily

Fed Chair Visits White House – Federal Reserve Chair Jerome Powell visited the White House at President Trump’s request for their first meeting since Trump took office.  Trump told Powell he was making a mistake by not lowering interest rates while Powell refrained from discussing his expectations for future rate levels and stressed that the level of interest rates will be entirely dependent on incoming economic information.  Powell’s last visit to the White House was in 2022 at the request of President Biden.

Source: Thomson Reuters

Core PCE – Apr: 0.1% (Reuters Poll est. 0.1%) Mar: 0.1%

Month-over-month core inflation rose 0.1% in April, the same rate of increase as the previous month.  On a year-over-year basis, core inflation was 2.5%, the smallest increase since early 2021.  While the modest rise was welcomed by investors, analysts still caution that the full effect of recent tariffs may not be incorporated into the data just yet.

Source: Refinitiv Eikon, Barron’s

A Real Old Fashioned – New company, Arctic Ice, has begun a business harvesting ice from glaciers in Greenland and shipping it to exclusive bars in the United Arab Emirates.  The company claims that the ice has been frozen for over 100,000 years and has not been contaminated by human pollutants, making it the cleanest water on Earth.  The company charges approximately $7 per ice cube.

Source: The Guardian, Arctic Ice

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Upcoming Events

6/2 – ISM Manufacturing PMI, Fed Chair Speech

6/4 – ISM Services PMI

6/5 – ECB Meeting, Notable Earnings Reports: Broadcom

6/6 – Jobs Report

Source: Refinitiv Eikon