ADDX GO Market Morning Wrap - 5th June

Stock Market

On Wednesday, US Eastern Time, the three major indices were mixed. 

 

At the close, the Dow Jones Industrial Average fell 0.22% to 42,427.74; the S&P 500 rose 0.01% to 5,970.81; and the Nasdaq Composite Index rose 0.32% to 19,460.49.  

 

Hot tech stocks were mixed: Meta rose over 3%, Broadcom and AMD rose over 1%, while Tesla fell over 3%.

Social media, nonferrous metals, and semiconductors led the gains, with American Silver Corporation up over 5% and Pinterest up over 2%.

 

Automakers and oil & gas sectors declined: Lotus fell over 5%, Baytex Energy dropped over 3%, and General Motors, Honda, and Rivian fell over 2%.  

 

The May nonfarm payrolls report is scheduled for Friday, with economists now expecting 125,000 new jobs in May.  

 

However, analysts believe the market will trade in a range short-term, entering a relatively quiet phase for market drivers that could last until next month.  

Global Hotspots  

• Fed Beige Book: US economy cools slightly as uncertainty and tariff pressures intensify. According to the Federal Reserve’s Beige Book economic report released Wednesday, recent US economic activity has declined slightly, indicating tariffs and high uncertainty are broadly impacting the economy.  
• Trump reveals details of call with Putin: Russia will respond to Ukrainian drone attacks. On Wednesday, US President Trump said Russian President Putin told him in a call that Russia would have to respond to recent attacks by Ukraine, dimming prospects for near-term peace in the Russia-Ukraine conflict.  
• Bank of Canada holds rates steady but hints at possible future rate cuts. On Wednesday, the Bank of Canada announced it would keep its key benchmark interest rate unchanged at 2.75%, saying it needs to assess the impact of US trade policies but noting rate cuts may be necessary if the economy weakens due to tariffs.  

Company News

• Circle’s US IPO pricing may exceed market range. Reportedly, stablecoin giant Circle’s initial public offering (IPO) pricing is expected to be higher than its marketed range, with the IPO oversubscribed by more than 25 times.  
• OpenAI surpasses 3 million paid enterprise users, projects $12.7 billion in annual revenue. AI startup OpenAI announced Wednesday that its paid enterprise users have exceeded 3 million, a surge from the 2 million reported in February, alongside product updates and upgrades. A source confirmed OpenAI expects $12.7 billion in revenue this year.  
• Meta invests millions to partner with Hollywood for high-end VR headset to challenge Vision Pro. Reportedly, Meta is seeking Hollywood partnerships to secure exclusive content for its planned high-end VR headset launching next year.  

Forex & Commodities

COMEX gold futures rose 0.6% to $3,397.4/oz. COMEX silver futures rose 0.06% to $34.655/oz.  

 

WTI crude futures settled at $62.85/barrel, down 56 cents (-0.88%). Brent crude futures settled at $64.86/barrel, down 77 cents (-1.17%).  

 

The US Dollar Index, measuring the dollar against six major currencies, fell 0.45% to end at 98.786 in forex trading.  

Key Events

• CBO: 'Big Beautiful' bill to add $2.4 trillion to deficit. A Wednesday analysis by the US Congressional Budget Office (CBO) found that President Donald Trump’s proposed tax reform bill would cut taxes by $3.75 trillion over a decade but increase deficits by $2.4 trillion.  
• Saudi Arabia wants OPEC+ to implement more massive oil production increases. Saudi Arabia hopes OPEC+ will continue accelerating oil supply growth in the coming months to regain lost market share. The kingdom wants OPEC+ to add at least 411,000 bpd in August and possibly September to capitalize on peak summer demand in the Northern Hemisphere.  

Cryptocurrency

Bitcoin fell 1.1% to $105,025, with 24-hour trading volume dropping 3.8% to $44.92 billion.  

 

Ethereum (ETH-USD) rose 0.2% to $2,626.  

 

XRP (XRP-USD) fell 2.7%, BNB (BNB-USD) rose 0.4%, and Solana (SOL-USD) declined 3%.  

 

Dogecoin (DOGE-USD) slumped 3.7%, and Cardano (ADA-USD) fell 2.2%.  

 

The total market cap of the cryptocurrency industry fell 1.2% in the past 24 hours to $3.31 trillion, with trading volume dropping 7.8% to $105.56 billion.  

Key Events 

• JPMorgan Chase plans to accept crypto ETFs as loan collateral. Reportedly, JPMorgan is preparing to accept crypto-related assets as loan collateral, including Bitcoin exchange-traded funds (ETFs). The bank will first offer financing for crypto ETFs, starting with BlackRock’s iShares Bitcoin Trust.