Following the US manufacturing index release, the three major US stock indices hit new daily lows, while US Treasury yields retreated and the US dollar index approached a six-week low. After news of potential talks between leaders emerged, US stock indices and Chinese concept indices turned positive, securing a narrow gain at the start of June, with Treasury yields rebounding. Meta closed up 3.6%, while Tesla fell over 1%.
Amid steel tariff concerns, Cleveland-Cliffs surged 23%, Ford and General Motors dropped nearly 4%, Stellantis European shares declined almost 5%, and New York copper briefly rose nearly 6%. The Trump administration’s “steel tariffs” rapidly escalated global trade tensions, and geopolitical risks surged due to the weekend Russia-Ukraine conflict. European and US stocks faced downward pressure during the session, while gold and crude oil saw strong rebounds. However, later, as direct Russia-Ukraine negotiations concluded and reports of potential high-level leader communications emerged, US stocks turned positive, narrowly gaining at the start of June. US indices showed a V-shaped rebound trend in early trading; after the weak US ISM manufacturing index was released, they hit new daily lows, but turned positive following news of potential talks among major economies’ leaders. From Sunday to Monday, according to CCTV, several “black swan” events occurred before the second round of Russia-Ukraine talks on Monday. Ukraine claimed to have destroyed 41 Russian strategic bombers with drones, attacking about 34% of Russia’s main airport strategic bomber fleet. Some Russian military bloggers compared the scale and impact of this attack to the “Russian Pearl Harbor,” but Russian media stated that Ukraine’s claims were pure rumors. During European trading, an EU spokesperson expressed deep regret over US President Trump’s announcement to increase steel tariffs from 25% to 50%; if EU-US negotiations fail to reach an acceptable solution, the EU is prepared to implement countermeasures, with existing and potential additional measures automatically taking effect on July 14, possibly earlier. Before US market opening, according to CCTV, the second round of direct Russia-Ukraine negotiations concluded. CCTV cited reports that the Russian delegation was satisfied with the outcomes and submitted a peace memorandum to Ukraine; sources indicated potential meetings between Russian and Ukrainian leaders in Istanbul; media reports highlighted significant differences in ceasefire conditions. Subsequently, crude oil gradually narrowed over half of its intraday gains. During early US trading, the US May ISM manufacturing index showed manufacturing activity contracting for the third consecutive month, with the import sub-index hitting a sixteen-year low, reflecting tariff impacts. After the data release, the three major US indices hit new daily lows, Treasury yields erased intraday gains, and the US dollar index extended losses, nearing the three-year low set six weeks prior. In early US trading, media cited White House officials suggesting that leaders of two major economies might soon engage in direct talks, followed by the White House press secretary indicating potential dialogue this week.The three major U.S. stock indices turned positive sequentially, with the China-concept index also reversing gains. U.S. Treasury yields expanded their increases again, while the dollar’s decline narrowed slightly. After the U.S. ISM manufacturing index release, the three major indices hit daily lows. Following news of potential talks between the two countries’ leaders, the Nasdaq and S&P 500 turned positive first, followed by the Dow Jones in late trading. Trump announced that the U.S. would increase steel tariffs, leading to a significant intraday rally in steel stocks and declines in traditional automakers like Ford.
U.S. Stock Indices: At their daily lows during early trading, the Dow fell over 416 points (nearly 1%), the S&P 500 dropped nearly 0.9%, and the Nasdaq declined nearly 0.7%. Subsequently, the Nasdaq turned positive multiple times and fully recovered from losses by the end of early trading. The S&P 500 and Dow turned positive during afternoon and late trading, respectively. All three indices closed higher, with the Dow posting a three-day winning streak, while the Nasdaq and S&P 500 rebounded from Friday’s declines. The S&P 500 rose 0.41% to 5,935.94, marking its highest level since May 20. The Nasdaq gained 0.67% to 19,242.61, reaching its highest point since February 24. The Dow added 35.41 points (0.08%) to close at 42,305.48. The Russell 2000 (small-cap index) rose 0.19%, the Nasdaq 100 (tech-heavy) increased 0.71%, the Nasdaq Technology Market Cap Weighted Index (NDXTMC) climbed 1.03%, and the Nasdaq Biotechnology Index advanced 1. 62%. U.S. Stock ETFs: The Biotechnology ETF gained 1.63%, the Semiconductor ETF rose 1.48%, the Energy Sector ETF increased 1.31%, and the Global Tech ETF added 0.9%. In contrast, the Banking ETF fell 0.68%, and the Regional Banking ETF declined 0.74%. S&P 500 Sectors: Among sectors, only Industrials closed down (over 0.2%) on Monday. Energy led gains with nearly a 1.2% increase, IT (including chip stocks) rose about 0.9%, and Communication Services (including Meta) advanced approximately 0.6%. Magnificent 7: The Magnificent 7 index of U.S. tech giants rose 0.67% to 162.41. Meta surged 3.62% after reports of plans to automate ad creation with AI by end of next year. Nvidia gained 1.67%, Amazon rose 0.80%, Apple increased 0.42%, and Microsoft added 0.35%. Tesla fell 1.09% due to weaker May sales in European countries like Sweden and France, while Alphabet (Google A) declined 1%.58%. Steel stocks: Cleveland-Cliffs (CLF) closed up approximately 23.2%, Nucor (NUE) ended 10.1% higher, and Steel Dynamics (STLD) rose 10.3%.
Auto stocks: Ford (F) closed down 3.85%, General Motors (GM) fell nearly 3.9%, and Stellantis US shares (STLA) ended 3.55% lower. Chip stocks rebounded after last Friday’s decline: the Philadelphia Semiconductor Index closed nearly 1.6% higher; Micron Technology ended up almost 4%, AMD rose over 3.5%, Broadcom gained more than 2.7%, Qualcomm and Intel increased nearly 1%, while TSMC’s US shares advanced about 0.8%. AI concept stocks generally rose. Tempus AI closed 15% higher, Super Micro Computer (SMCI) ended up nearly 3%, Applovin increased almost 2.3%, Oracle (ORCL) rose over 0.7%, Palantir edged up 0.2%, while C3.ai closed down nearly 6.1% and Dell fell almost 2.9%. Chinese stocks: The Nasdaq Golden Dragon China Index (HXC) turned positive before the end of the early session after hitting a daily low with a decline of over 0.5%, closing up more than 0.5%. Xiaomi pink sheets rose 3.9%, Tencent pink sheets gained over 2%, US-listed Chinese stocks including Baidu, JD.com, NetEase, and Alibaba rose more than 1%, while XPeng fell 0.2%, NIO dropped 0.7%, Li Auto declined 1.8%, New Oriental decreased 3.4%, and Pony.ai plunged 9.5%. High-volatility stocks: BioNTech (BNTX) closed over 18% higher after media reports of a $11.1 billion agreement with Bristol Myers Squibb to co-develop an experimental PD-1/L1xVEGF dual anti-cancer drug. Applied Digital (APLD) ended nearly 48.5% up after signing two 15-year lease agreements with Nvidia-backed cloud service provider CoreWeave, expected to generate total revenue of $7 billion. CoreWeave (CRWV) closed about 8% higher. Pan-European stocks retreated, with the auto sector sensitive to tariff prospects falling over 2%; Stellantis closed nearly 5% lower. The pan-European STOXX 600 index, which ended a two-day losing streak last Friday, declined 0.14%. Among STOXX 600 sectors, autos closed nearly 2.1% lower, with Milan-listed Stellantis European shares down almost 5%, Mercedes-Benz falling nearly 2.7%, BMW dropping over 2.4%, and Volkswagen declining nearly 2%.Stocks fell by 2%. In individual stocks, Publicis Groupe, a media stock, closed down 3.8% after reports that Meta plans to automate ad creation using AI by the end of next year. Babcock International Group, a defense stock listed in London, closed up 8.2% after the UK Prime Minister announced a £15 billion investment to ensure nuclear deterrence and expand the fleet with 12 attack nuclear submarines.
Most major European stock indices declined on Monday. German, French, and Italian stocks, which had been rising for three consecutive days, retreated, while Spanish and UK indices extended their gains to nine and four days, respectively. Following US manufacturing data, US Treasury yields initially pulled back but then continued to rebound, rising after two consecutive days of declines. Investors are concerned about the worsening US government deficit, increasing pressure on long-term Treasuries. The spread between 20-year and 30-year Treasury yields is the widest since 2021. The yield on the benchmark 10-year US Treasury briefly fell below 4.42% after the ISM manufacturing index was released but later resumed its climb, approaching 4.47% during the afternoon session to set a new daily high. It settled around 4.44% at the close of the bond market, up about 4 basis points for the day. The 2-year Treasury yield also dipped below 3.91% near the daily low after the ISM data but recovered, climbing above 3.94% in the afternoon to a fresh daily high. It ended around 3.94%, up about 4 basis points. Long-term Treasuries: By the stock market close, the 20-year yield rose 6.07 basis points to 4.9935%, after reaching 5.0060% during the afternoon session. The 30-year yield increased 5.88 basis points to 4.9883%, after touching 5.0008% in the afternoon. After the US manufacturing data, the US Dollar Index hit a nearly six-week low, the Japanese yen rose 1%, the euro reached a nearly six-week high, offshore yuan briefly turned higher to reclaim 7.21, and Bitcoin narrowed its losses to regain $104,000. US Dollar Index: After the ISM manufacturing index release, the ICE US Dollar Index (DXY) accelerated its decline, dropping to 98.61 during the early session—a low since April 22—with a daily loss of over 0.7%. By the end of Monday’s forex session, it was around 98.70, and both DXY and the Bloomberg Dollar Spot Index fell about 0.6%, retreating after Friday’s rebound. Yen and Euro: The yen rose for the third consecutive day. After the US ISM index release, USD/JPY refreshed its daily low to 142.53 during the early session, down about 1% for the day. EUR/USD rose to 1.1450, hitting a high since April 22, with a daily gain of nearly 0.7%.The offshore renminbi (CNH) fell to 7.2241 against the US dollar during the Asian session, hitting a new low since May 20 and dropping 234 points from the daily high at the beginning of the session. After the release of the US ISM index, it briefly turned higher. At 4:59 Beijing time on June 3, the offshore renminbi was quoted at 7.2106 against the US dollar, down 55 points from Friday’s New York close, marking two consecutive days of decline.
Bitcoin (BTC) fell below $103,800 during the early US trading session, refreshing the daily low and dropping more than $2,000 or over 2% from the daily high during the European session. After the release of the US ISM index, the decline narrowed, and it once climbed back above $104,700. By the US market close, it was above $104,500, down about 0.6% in the past 24 hours. Geopolitical risks intensified, and crude oil rebounded strongly, with US oil rising over 5% and Brent crude gaining nearly 5% during the session. After the US manufacturing index was released in the early US session, gains accelerated and narrowed. During the US midday session, media reported that the Trump administration had made a 180-degree shift in its attitude towards Iranian uranium enrichment, proposing last Saturday to allow Iran to conduct limited low-level uranium enrichment activities. US oil rose less than 3% during the day. International crude oil: Before the US market opened, US WTI crude approached $63.90, up nearly 5.1% on the day, while Brent crude August contract broke above $65.70, up over 4.7%. By the close, crude oil rebounded after two consecutive days of decline. WTI July crude futures closed up 2.84% at $62.52 per barrel, and Brent August crude futures closed up 2.94% at $64.63 per barrel, refreshing highs since May 20 and May 21, respectively. US gasoline and natural gas futures both rebounded after two consecutive days of decline. NYMEX July gasoline futures closed up nearly 1.86% at $2.0525 per gallon; NYMEX July natural gas futures closed up over 7.16% at $3.6940 per million British thermal units. Weaker US dollar coupled with increased trade war and geopolitical risks pushed gold up nearly 3% during the session, hitting a new high in over three weeks. Investors worried that copper might face high tariffs after steel, and New York copper once rose nearly 6%. London zinc closed up nearly 3%, and London tin and lead reversed four consecutive days of decline, while London copper rebounded over 1% to a two-month high. Gold: After the US manufacturing data was released, gold gains further expanded. During the late US trading session, New York gold futures broke above $3,400 to over $3,407, refreshing the intraday high since May 8, up nearly 2.8% on the day. Spot gold rose above $3,382, up over 2.8% on the day. Last Friday, it fell 0.COMEX August gold futures closed up 2.47% at $3,397.2 per ounce. Shortly after the U.S. stock market closed, spot gold traded slightly below $3,380, marking a daily gain of nearly 2.8%.
NYMEX Copper: COMEX July copper futures rose 3.87% to $4.8585 per pound, hitting a daily high during European trading hours with an intraday increase of over 5.8%. LME Base Metals: Zinc led the gains, closing nearly 3% higher, while tin and铅 rose approximately 1% and over 1%, respectively, all rebounding after four consecutive declines. Nickel advanced nearly 2% to a one-week high, and copper gained over 1%, both recovering from last Friday’s decline, with copper reaching a two-month peak. Aluminum, after three straight drops to a three-week low, closed up 0.9%. Risk Warning and Disclaimer: Markets involve risks; investments should be made cautiously. This article does not constitute personal investment advice and does not consider individual users’ specific investment objectives, financial situations, or needs. Users should evaluate whether any opinions, views, or conclusions herein suit their particular circumstances. Investments based on this content are at the investor’s own risk.
