🇺🇸📊 June 4, 2025 – U.S. Stock Market & Economic Highlights

📈 Market Summary

• NASDAQ: 19,460.49 (+0.32%)
• S&P 500: 5,970.81 (+0.01%)
• Dow Jones: 42,427.74 (flat)
• KRW/USD Exchange Rate: 1,363.50 KRW (▼1.12%)

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📰 Top News & Key Issues

1. 📉 ADP Employment Report: Private Sector Adds Only 37,000 Jobs

According to the May ADP Employment Report, the U.S. private sector added just 37,000 jobs—falling far short of expectations. This signals a slowdown in the labor market, potentially influencing the Fed’s future rate decisions.
Source: U.S. News

2. 🏭 Service PMI Falls Below Expansion Line

The U.S. Services PMI for May came in at 49.8, dipping below the neutral 50 mark. This indicates contraction in service sector activity, reflecting pressure from rising costs on businesses.
Source: Reuters

3. 💼 Fed’s Beige Book: Slowing Activity & Cost Pressures

The Fed’s latest Beige Book showed a slowing pace of U.S. economic activity, with many firms reporting rising input costs. This could weigh on upcoming monetary policy decisions.
Source: Bloomberg

4. 📉 Treasury Yields Drop Amid Weak Data

Following weaker-than-expected economic data, U.S. Treasury yields declined as investors increased their bets on potential Fed rate cuts.
Source: Bloomberg

5. 📉 Trump Tariff Policies May Hurt Growth

The Congressional Budget Office (CBO) warned that President Trump’s tariff proposals could slow economic growth and raise inflation, despite potentially reducing the fiscal deficit.
Source: ABC11

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🔮 Outlook & Key Dates Ahead

• June 5 (Thu): Weekly Initial Jobless Claims
• June 6 (Fri): May Nonfarm Payroll Report
• June 12 (Thu): U.S. CPI Report
• June 17–18: FOMC Meeting

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💡 Conclusion & Investment Strategy

Conclusion:
Recent economic indicators suggest signs of a slowing U.S. economy, with labor market weakness and declining service sector activity. These developments are likely to shape the Fed’s policy direction in the coming weeks.

 

Investment Strategy:

• Defensive Portfolio Allocation: Investors should consider shifting toward defensive sectors in light of economic uncertainty.
• Caution on Rate-Sensitive Stocks: Financials and real estate may remain volatile due to interest rate risks.
• Focus on Tech & AI: Long-term growth potential remains in tech and AI-related stocks despite short-term volatility.

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📝 Final Thoughts

The current economic climate requires extra attention from investors. As volatility rises on soft labor data and policy uncertainty, it’s important to stay cautious and closely follow upcoming economic indicators and Fed signal

s.