Wall Street Roars Into June as Optimism Returns
Stocks didn’t just walk into June—they charged in. After posting the kind of gains in May that investors haven’t seen since 2023, the S&P 500 pushed up another 1% to hover near the 6,000 mark. The Nasdaq outpaced even that, leaping a solid 1.2% higher on June 2. This strong start comes on the heels of mounting excitement over the possibility of thawing trade tensions between the U.S. and its key economic rivals. Some big names in tech—especially Nvidia and Broadcom—rode the wave, boosted by fresh optimism around global demand for high-powered semiconductors.
Steel stocks were another major story. The sector jolted higher after word got out about potential changes to tariff policy. For companies that have been squeezed by cheap imports, even the rumor of lighter trade barriers was like rocket fuel for their share prices. Industry leaders in steel saw double-digit percentage bursts early in the month, grabbing the attention of investors who had all but written them off during the more volatile months of 2024.
Tech’s Momentum and Small Caps Make Their Stand
Tech giants just can’t seem to slow down. Stocks like Nvidia and Broadcom kept climbing, as the appetite for chips used in everything from artificial intelligence to smartphones continues to grow. It’s not just about the hardware, either. Companies that provide the digital backbone for today’s connected world have seen demand pick up again, especially as global supply chain headaches fade into memory.
Outside the crowd-pleasing names on the Nasdaq, smaller companies are also back in the spotlight. The Russell 2000—widely seen as the home for America’s up-and-comers—shook off early-year jitters and posted a tidy 1.7% weekly gain by mid-June. That’s especially notable given the bumpy ride small caps endured just a few months ago. Analysts say this bounce could hint at broader confidence spilling over from Wall Street’s goliaths to its scrappy underdogs.
But bullish sentiment isn’t unchecked. The jobs report for May, due out later in the week, looms large in the minds of traders trying to gauge whether the economic recovery has real staying power. And even as stocks climb, no one’s ignoring the potential landmines, from shifting White House trade policies to a global political landscape that still feels anything but settled.
The VIX index, Wall Street’s favorite fear gauge, has stayed up compared to most of 2024, though there are early signs the market’s nerves are calming as talks between major trading partners keep crawling forward. If these negotiations bear fruit, the party on Wall Street could keep going—but as always, investors are keeping one eye on the exit.