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Weekly Market Review - 02-06-2025

  • Writer: Anthony Walters
    Anthony Walters
  • Jun 2
  • 3 min read

In this edition of our Weekly Market Review, U.S. tech stocks continued to lead the charge, buoyed by strong earnings from nVidia, while global markets absorbed mixed economic signals. A slight contraction in U.S. GDP and tame inflation kept investors cautious. From ECB speculation to Google’s ESG push and renewed U.S.-China trade tensions, we break down the events shaping markets and sentiment.



Market Recap.


The Nasdaq 100 ETF (+1.80%) made the most headway last week as tech earnings were positive, led by nVidia, who grew quarterly revenue by nearly 70%. 

 

Both the S&P 500 ETF (+1.67%) and the Dow Jones Industrial Average ETF (+1.49%) followed trend, making healthy gains. The FTSE 100 ETF (+0.85%) was positive, if a little behind the pack.  

 


News.


Real GDP in the US dropped 0.2% in Q1 2025, according to the US Bureau of Economic Analysis (BEA). This was attributed to a rise in imports and a decrease in government spending. However, the GDP decline was offset partially by "increases in investment, consumer spending and exports", the US government agency said.  



Inflation. 


U.S. inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.10% last month after being unchanged in March, data showed. 


Consumer spending, meanwhile, which accounts for more than two-thirds of economic activity, rose 0.20% last month after an unrevised 0.70% jump in March. 



Central Banks.


The euro could become a viable alternative to the dollar, earning the 20-nation bloc immense benefits, if governments could only strengthen the bloc's financial and security architecture, ECB President Christine Lagarde has said. "The ongoing changes create the opening for a 'global euro moment,'" Lagarde said at a lecture in Berlin. "The euro will not gain influence by default - it will have to earn it." 



Commodities.


Natural gas gained over 13%, supported by rising demand, lower output, and a broader energy market rally. Forecasts for warmer-than-normal temperatures boosted expectations for air conditioning demand.



ESG.


Google and agtech solutions provider Arable have announced a water replenishment-focused collaboration, with Google agreeing to fund projects to bring Arable’s efficient irrigation technology to farmers in North and South Carolina. 


According to the companies, Google plans to invest more than $4 million to fund the use of Arable’s technology on 20,000 acres, aimed at saving more than 500 million gallons (1.9 billion litres) over eight years. 



Geopolitics.


President Donald Trump has accused China of violating a recent trade agreement with the United States. The sharp criticism appeared to cast doubt over the staying power of the accord, setting up the possibility of a rekindled trade war between the world's two largest economies. Trump did not identify the action taken by China that had violated the agreement. 


The remarks came hours after U.S. Treasury Secretary Scott Bessent voiced pessimism about U.S.-China trade talks. "I would say that they are a bit stalled," Bessent said when asked about the status of the trade talks. "I believe that we will be having more talks with them in the next few weeks, and I believe we may at some point have a call between the president and Party Chair Xi [Jinping]." 



Week Ahead.


US: Trade tensions are set to remain a key focus. President Trump accused China of breaching a recent tariff truce, while Trade Secretary Scott Bessent noted talks with Beijing were ‘a bit stalled’. Investors will be watching for any further developments or retaliatory moves. 


Europe: The spotlight will be on the ECB policy meeting this Thursday, where a 0.25% interest rate cut is expected. Any shift in guidance will be closely scrutinised, particularly if inflation falls close to target. 



Sources. 

Anthony Walters - Head of ESG at Clever Adviser Technology Ltd (Clever) 

Market recap Data sourced from FE FundInfo & Koyfin. ETFs quoted: iShares Core FTSE 100 UCITS ETF, iShares Core S&P 500 UCITS ETF, iShares Nasdaq 100 UCITS ETF (quoted in Pounds Sterling). 

News US GDP stumbles and falls 0.2% in first quarter, By Patrick Brusnahan, Investment Week, 29/05/2025 

Inflation US inflation tepid in April, consumer spending slows, by Reuters, 30/05/2025 

Central Banks Euro could become the dollar's alternative, Lagarde says, By Balazs Koranyi, Reuters/Yahoo Finance, 22/05/2025 

ESG Google Backs AgTech Projects to Save 2 Billion Liters of Water on U.S. Farms, by ESG Today, 30/05/25 

Geopolitics India approves stealth fighter programme amid tensions with Pakistan, By Reuters/Yahoo Finance, 27/05/2025 

Commodities Koyfin & Trading Economics, 02/06/25 

Week ahead Nathan Sweeney, Marlborough Group, 30/05/2025 

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