💃 June starts higher

and Fed isn't sure

Good morning investors! Most sectors closed higher yesterday as investors look past trade concerns.

Today we cover:

  • What Fed had to say

  • Stocks jump again

  • Financial moves for a career change

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📊 Economy and News 

Fed Chair Powell Didn’t Say Much, Other Fed Members Provide Policy Insights

Markets awaited a speech from Fed Chair Jerome Powell on Monday, but he only introduced the Fed’s International Finance Division’s 75th Anniversary Conference, offering little policy insight. Despite meeting Trump last week and the Fed’s inflation gauge showing a 2.1% price increase—the slowest in years—Powell, true to Trump’s jabs, was late to his talk.

Investors hoped for more, but Dallas Fed President Lorie Logan and Fed Governor Christopher Waller provided clarity. Logan supported Powell’s cautious stance on rate cuts, noting inflation slightly above the 2% target and potential tariff-driven price pressures. Waller, more aligned with the White House, suggested openness to cuts later if inflation and labor markets remain stable, viewing tariff effects as temporary.

Markets now focus on upcoming data ahead of the June 18 FOMC meeting, with the CME FedWatch tool indicating a less than 5% chance of a rate cut.

Global hits:

Changing situation: More office space is being removed than added for the first time in at least 25 years as ‘working from home’ is now the new trend. Data like this could affect regions where office rentals generate a lot of income (Dubai, anyone?). Also, people are cooking at home at the highest levels since the start of the pandemic, which means restaurants have more competition.

News from India: Tesla has entered India but it is not keen on local production yet. This comes at a time when Indian manufacturing growth strengthens to a 3-month low in May. The country is trying to reduce prices and has cut basic import tax on crude edible oils to 10%.

Reminder: Deputy Treasury Secretary Michael Faulkender said he expects “a lot more deals” could be announced before President Donald Trump’s 90-day tariff pause expires.

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📈 Stocks

S&P 500 5,935.94 (+0.41%)
DJIA 42,305.48 (+0.084%)
NASDAQ 19,242.61 (+0.67%)
BRENT CRUDE 65.17  (+0.84%)
* Prices as of June 3rd, 12:20 AM UTC

Wall Street Rises Amid Global Trade Tensions

Stocks climbed on Monday as China rebuffed U.S. claims of violating a temporary trade agreement, instead accusing Washington of breaching the deal, signaling a breakdown in talks between the world's two largest economies.

In fact, the Chinese Ministry of Commerce stated that the U.S. violated preliminary talks by imposing new AI chip export controls and revoking Chinese student visas.

The tensions flared up again after a brief lull following a meeting in Geneva between the two countries where they agreed to a 90-day tariff suspension. Presidents Donald Trump and Xi Jinping are expected to hold discussions this week.

U.S.-EU relations also strained after President Trump announced a plan to double steel tariffs to 50%, prompting the EU to caution that this move “undermines” ongoing negotiations.

Solid steel? Steel stocks soared on the news of higher tariffs, with Cleveland-Cliffs (23%), Steel Dynamics (10%), and Nucor (+10%) recording impressive numbers. Nippon Steel (+0.59%) saw a slight uptick, while U.S. Steel (-0.54%), a company targeted for acquisition, declined, despite President Trump's assurance on Friday that the takeover would ensure the company remains under U.S. control.

Monday’s gains followed a robust May, with the S&P 500 up over 6% for the month, its strongest performance since November 2023, closing at $592.71. The Nasdaq surged more than 9% for the month and the Dow rose about 4%.

Look here: Snowflake to buy database startup Crunchy Data for about $250 million. Also, Robinhood’s $200 million Bitstamp deal puts it in a great position, giving it over 50 global crypto licenses, a ready-made institutional client base, and new infrastructure for lending, staking, and crypto-as-a-service.

Exciting: CoreWeave and Applied Digital signed long-term leases for AI data centers. CoreWeave shares rose over 7%, and Applied Digital jumped more than 40%. CoreWeave will supply AI and high-performance computing infrastructure for Applied’s North Dakota campus.

Also, Boeing surged 2% after Bank of America upgraded its rating to "Buy" from "Neutral," boosting the price target to $260 from $185. The firm highlighted Boeing’s expanding role in global trade diplomacy, driven by recent aircraft deals with the U.K., Qatar, UAE, and China.

Meta aims to launch a fully automated AI-driven ad creation tool by year-end, enabling brands to provide a product image and budget for AI-generated ads, including imagery, video, text, and optimized targeting on Facebook and Instagram. CEO Mark Zuckerberg called it a “business results machine.” The news was lapped up by investors sending the stock 3.6% higher.

💵 Personal Finance

Three Financial Moves for a Career Change

Rising costs, fewer jobs, and tough competition are driving many to consider new career paths. However, changing careers carries financial risks. To navigate this transition wisely, follow these three key money moves:

  1. Assess Your Income Needs
    Calculate the income required to cover your expenses, considering potential changes like moving or major life events. Research average salaries, growth potential, and benefits in your target field to ensure it aligns with your financial goals.

  2. Reduce Spending in Advance
    A career change may lead to a lower paycheck or income gap. Create a budget to understand your financial flexibility. Cut non-essential spending and consider freelance or gig work to supplement income during the transition.

  3. Build an Emergency Fund
    Save three to six months of living expenses before switching careers. This buffer helps cover unexpected costs or jobless periods, reducing the need for high-interest debt. If savings are low, consult a financial advisor to optimize resources.

Here’s a fun video on the topic:

Strategic planning minimizes risks, ensuring financial stability during your career shift.

💰 Be a Better Investor

"You must gain control over your money or the lack of it will forever control you."

Dave Ramsey

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.