Constellation Energy and Vistra stock surge after PJM capacity auction results
Investing.com -- U.S. stocks ended little changed on Friday, capping a strong May despite renewed trade tensions. The S&P 500 slipped 0.01% to 5,911.69, the Nasdaq Composite fell 0.32% to 19,113.77, while the Dow Jones Industrial Average added 54.34 points, or 0.13%, to close at 42,270.07.
The muted session followed U.S. President Donald Trump’s comments accusing China of breaching a preliminary trade deal. Still, investors shrugged off the concerns, focusing instead on recent trade progress, including a U.S.–U.K. agreement that raised hopes for broader tariff resolutions.
May ended on a strong note, with the S&P 500 up 6.2% and the Nasdaq gaining 9.6%—their best monthly performance since November 2023. The Dow climbed 3.9%.
For the week, the S&P rose 1.9%, the Nasdaq added 2%, and the Dow gained 1.6%.
This week, equities are likely to be driven this week by a combination of key U.S. economic reports, developments on fiscal policy in Washington, and ongoing trade headlines, as markets hover near record levels.
Investors will be watching a busy slate of data releases, including several labor market indicators, with the main focus on Friday’s U.S. jobs report for May. Economists polled by Reuters expect the report to show 130,000 jobs added during the month, down from April’s 177,000.
“Now that we’re back up here not all that far from the record high, I think the hard data needs to hold in better than the market expects to really advance from here,” said Scott Wren, senior global market strategist at the Wells Fargo (NYSE:WFC) Investment Institute.
Economists at Bank of America said payrolls in May are likely to rise by around 150,000.
“Claims in the survey week remained at muted levels. Firms likely paused the hiring of trade & transportation workers but given elevated uncertainty about the steady state on tariffs, we don’t think they would have already started shedding workers. Risks are to the downside,” they said in a note.
The economists expect the unemployment rate to remain at 4.2%.
The focus will also be on fiscal negotiations in Washington as the Senate prepares to review a tax-and-spending package that cleared the House earlier this month.
U.S. President Donald Trump signaled he may push for changes, telling reporters he plans to negotiate elements of the “Big, Beautiful” tax bill. His remarks followed criticism from Elon Musk, who argued the legislation could hinder efforts to rein in the federal deficit.
CrowdStrike, Dollar General, Broadcom to report earnings
Alongside key economic data, several notable corporate earnings reports could also move the market.
Notably, CrowdStrike Holdings Inc (NASDAQ:CRWD) is scheduled to report earnings on Tuesday, and some investors are cautious heading into the release following a string of underwhelming results from other cybersecurity companies in recent weeks.
On the retail side, Dollar General Corporation (NYSE:DG) is also due to report Tuesday, with Dollar Tree Inc (NASDAQ:DLTR) and Five Below Inc (NASDAQ:FIVE) set to follow on Wednesday.
Thursday’s earnings lineup includes Broadcom Inc (NASDAQ:AVGO) and Lululemon Athletica Inc (NASDAQ:LULU). The former is expected to deliver solid results, with analysts projecting revenue and profit growth driven by strong demand for AI chips.
In a recent client note, Oppenheimer analysts referred to Broadcom as the “No. 2 AI franchise after NVDA,” and raised their price target from $225 to $265. “Broadcom’s core franchises in networking, wireless, broadband, server/storage, and software support sustainable growth. We remain long-term buyers," the analysts added
What analysts are saying about U.S. stocks
BTIG: "SPX is stuck between 5970 resistance and 5780 support. We see little edge in this range and expect more chop as we start summer. With that said, bulls maintain the upper hand as long as ~5780 support holds. Clearing 5970 would likely open the door to new all-time highs, while breaking under 5780 would likely fill the gap at 5720, and possibly bring 5500-5600 into play. As far as the calendar goes, June tends to start strong, and finish weak."
JPMorgan: "We argued in our Year Ahead that trade uncertainty needs to be digested first in the 1H, but also that equity risk-reward is potentially likely to turn more bullish later on in 2H. Post the recent bounce, we think softer leg is in store next, which could resemble a bit of a stagflationary episode, and during which trade negotiations play out."
RBC Capital Markets: "Effective June 2nd, we have revised our YE 2025 S&P 500 price target up from 5,550 to 5,730, an increase of 3.2%. Our new price target reflects our belief that the stock market is on a slightly better path than the one it was on in early April, when we cut our target for the second time this year, but not back to where it was in January or mid March."
"What we think this model is telling us is that current pricing in the S&P 500 already reflects the step-up improvement in macro fundamentals that occurred two weeks ago when the U.S.-China trade war experienced a significant de-escalation. Overall, this analysis leaves us feeling rather neutral on the direction of stocks through year-end."
Evercore ISI: "At the trough on 4/7, stocks priced a Globally Weighted Tariff Rate near 27% . At 5/28’s overnight peak at SPX 6,000 after the IEEPA ruling, stocks priced a Globally Weighted Tariff Rate around 6%. In between there were several “pivots”, the IEEPA ruling and subsequent stay, and renewed tension with China. The policy uncertainty inflection puts a near term ceiling on the Rally, given the S&P 500’s moving in inverse lockstep to Trade Policy Uncertainty since February’s peak. The precedent for huge rallies during Earnings Season, similar to 1Q25’s, is that the month ahead returns are choppy with plenty of volatility."