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05.06.2025 10:19 AM
US indices stall, Asia accelerates: what's happening in global markets

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Wall Street Ends Mixed as Traders Digest Economic Strains

U.S. stock markets wrapped up Wednesday's session without clear direction. The broad-based S&P 500 ended flat, while the tech-heavy Nasdaq eked out modest gains. In contrast, the Dow Jones Industrial Average slipped into negative territory amid renewed concerns about the economic toll of former President Donald Trump's trade stance.

Service sector hits a snag

For the first time in nearly a year, the U.S. service industry contracted in May. Businesses also reported paying more for input materials — a double-edged signal pointing to potential slowdowns in growth alongside persistent inflationary threats. Early-session optimism evaporated by the close, with trading volumes remaining subdued.

May's momentum: a flash of hope

Despite today's hesitation, May was a bright spot for equities. Both the S&P 500 and Nasdaq posted their strongest monthly gains since November 2023, driven by easing trade rhetoric and upbeat corporate earnings reports.

Barclays boosts forecast on recovery hopes

While the S&P 500 is still trailing its February record highs by more than 2%, outlooks are turning more constructive. Barclays joined other brokerage firms in raising its year-end target for the index, citing diminished trade uncertainty and expectations for normalized earnings growth by 2026.

U.S. Stock Index Summary:

  • Dow Jones Industrial Average fell by 91.90 points (–0.22%) to close at 42,427.74;
  • S&P 500 inched up by 0.44 points (+0.01%) to finish at 5,970.81;
  • Nasdaq Composite rose by 61.53 points, or +0.32%, ending the session at 19,460.49.

HPE beats estimates on AI and cloud demand

Hewlett Packard Enterprise shares gained 0.8% after the company reported better-than-expected Q2 results. Strong demand for AI-focused servers and hybrid cloud services powered both revenue and earnings beyond analyst forecasts.

GlobalFoundries announces $16B expansion

Shares of GlobalFoundries climbed 2.3% following the chipmaker's announcement that it plans to boost investments up to $16 billion. The expansion reflects confidence in long-term semiconductor demand despite global uncertainties.

Wells Fargo slips after brief rally

Despite touching a three-month high earlier in the day, Wells Fargo stock closed down 0.4%. Investors initially welcomed news that the Federal Reserve had lifted a longstanding $1.95 trillion cap on the bank's assets — but the enthusiasm faded quickly.

Tesla slips as European sales continue slide

Tesla shares dropped 3.5%, marking a fifth straight month of declining sales across major European markets. The sustained drop deepened concerns about waning demand in one of the company's critical international regions.

CrowdStrike drops on weak revenue outlook

CrowdStrike fell 5.8% after issuing a quarterly revenue forecast that fell short of analyst expectations. The cybersecurity firm's cautious guidance triggered fears of a slowdown in enterprise software spending.

Dollar Tree dives on weak profit forecast

Discount retail chain Dollar Tree saw its stock plummet 8% after warning that Q2 adjusted earnings could fall 50% year-over-year. The company cited tariff-driven volatility as a key drag on performance.

Regional optimism ahead of key policy updates

Asian equity markets opened on a positive note Thursday, as investors across the globe await the European Central Bank's latest policy update — a key indicator amid ongoing geopolitical and trade tensions.

Canada readies countermeasures against new U.S. tariffs

Canada is preparing a possible retaliatory response should the U.S. proceed with new tariffs on metal imports. Meanwhile, talks between Washington and Brussels have reportedly made progress, according to European Union officials.

Diplomatic momentum builds: Japan and Germany head to D.C.

Japan is dispatching its top trade envoy, Ryosei Akazawa, to Washington for renewed negotiations, while newly appointed German Chancellor Friedrich Merz is also scheduled to visit the U.S. capital — signaling intensified economic diplomacy from key American allies.

Market snapshot: regional winners and laggards

  • The MSCI Asia-Pacific ex-Japan Index climbed 0.4%, reflecting cautious investor optimism;
  • Japan's Nikkei dipped 0.5%, likely due to technical pullbacks;
  • South Korea's KOSPI jumped 0.9% to an 11-month high, buoyed by post-election enthusiasm under new president Lee Jae-myung;
  • Hong Kong's Hang Seng Index added 0.5%, supported by solid gains in tech stocks.

Currencies: dollar steadies after previous dip

The U.S. dollar index inched up by 0.1% to 98.879, trimming part of Wednesday's 0.5% decline. The dollar gained 0.2% versus the yen, hitting 143.00, while the euro held steady at $1.1411 after a 0.4% rise in the previous session.

Commodities: gold loses luster, oil prices retreat

Gold prices slipped, reversing some of the prior session's gains. Oil also declined following a buildup in U.S. inventories and a surprise move by Saudi Arabia to cut July prices for crude exports to Asian buyers, signaling potential softness in demand.

Gold eases after recent gains

Spot gold slipped by 0.2% to $3,367.30 per ounce as traders locked in profits following previous gains. The slight dip reflects cautious positioning amid mixed signals from currency and bond markets.

Crude under pressure from inventory build-up

U.S. West Texas Intermediate (WTI) crude oil fell 0.5%, settling at $62.58 per barrel. The decline follows reports of rising inventories in the United States and persistent uncertainty over global demand trends.

Futures stay flat in wait-and-see mode

Futures on both the Euro Stoxx 50, a benchmark for European equities, and S&P 500 e-minis, which track U.S. market sentiment, remained virtually unchanged. Markets appear to be in a holding pattern as investors await new signals from central banks and economic data releases.

Thomas Frank,
Analytical expert of InstaForex
© 2007-2025
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