Equity Markets Keep Climbing the Wall of Worry
June 9, 2025
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The S&P 500 Index closed above the psychologically important 6,000 level after Friday’s employment report suggested U.S. economic growth may be slowing but is not on the brink of a recession.1 The S&P 500 Index is now up more than 20% since its lowest levels this year in early April despite lingering fears regarding U.S. economic and trade policy uncertainty.2
The bond market’s reaction to Friday’s jobs report was much less favorable, with interest rates rising across the yield curve. 10-year Treasury yields increased by more than 10 basis points, moving above another psychologically important level of 4.50%.3
Investors this week will be closely watching any developments from new trade talks with China and negotiations in the U.S. Senate on how to proceed with the House version of President Trump’s “big, beautiful” tax and spending bill.
This week will also provide another critical test for the bond market with fresh inflation data and substantial new Treasury bond issuance. The May consumer price index (CPI) report is out on Wednesday, followed by the producer price index (PPI) on Thursday.4 The U.S. Treasury will issue $58 billion in 3-year notes on Tuesday, followed by $39 billion of 10-year notes on Wednesday and conclude with $22 billion of 30-year government bonds on Thursday.5 After a disappointing 20-year Treasury bond Auction in May, the 30-year bond auction will likely provide the biggest challenge.6
Sources:
1MarketWatch – The S&P 500 closes at 6,000 as bulls aim for return to record territory; 6/6/25
2CNN Business – Stocks are mixed and S&P 500 hovers near record high as Washington and Beijing discuss trade; 6/9/25
3CNBC – Treasury yields tick higher after latest U.S. jobs data release; 6/6/25
4MarketWatch – U.S. Economic Calendar; as of 6/9/25
5,6The Business Times – ‘Most unloved bonds’ turn routine US auction into crucial test; 6/9/25
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