Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average was down 0.6%, the S&P 500 was down 2.6%, and the NASDAQ fell 4.6%. Foreign stocks (MSCI EAFE) were also down for the week, falling 1.7%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.54%. (Data source: Wall Street Journal)
Strong Jobs Numbers, Markets Move Lower
The most recent jobs report was released on Friday and showed stronger gains for the U.S. labor market. Although a positive for the economy, markets did not have a great reaction to this as it may lead to a fed rate hike to slow inflation with the labor market not being a worry. The unemployment rate is currently 4.3%, and we’ve already nearly doubled the number of jobs gained in all of 2025 this year. This will be an interesting headline throughout this year as the economy and markets don’t always move in line together. Fed Chair Warsh will have an interesting first few meetings, which may set the tone for his term.
Tech Falls to End Week, Remains Strong Performer
Technology stocks have been on a strong stretch this year as AI continues to drive markets higher. Despite the NASDAQ selling off 4% to end the week, it remains up 10.7% for the year. The tech sector fell nearly 6% on Friday but remains up over 16% for the year, only trailing energy. Looking at longer-term returns, the tech sector is up over 800% over the last 10 years. This shows it has not just been AI that has driven tech higher, as this performance is long before AI became a mainstream thought. Time will tell if AI continues to boost tech returns or if we see a slowdown in AI spending, causing tech to sell off.
Ford Stock Up 13% Year to Date, 46% in the Last Year as the Company Pivots Away from Electric Vehicles
Ford (F), one of the most important companies in the automobile industry, has seen a massive 46% increase in its stock price in the past year as the company has shifted away from producing electric vehicles. The company recently invested $2 billion in a new division, Ford Energy, focused on supplying power to meet the demands of data centers. Additionally, the company reported Q1 earnings on April 29th. Ford reported earnings per share of $0.66 while analysts projected only $0.20 per share, and had $2.5 billion in profits for Q1 of 2026, up from $471 million in Q1 2025 (Ford Investor Relations). Ford is expected to report its second-quarter earnings at the end of July, and another strong quarter could help lift the stock price even higher this year (CNBC).
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Quiz
How many new jobs were added to the US Economy in May? (Scroll Down for Answer)
- 88k
- 137k
- 172k
- 205k
Answer:
3. 172k. According to the Bureau of Labor Statistics, over 172,000 jobs were added to the US economy in May, smashing economists’ estimate of only 88,000. The unemployment rate remained flat at 4.3%, displaying the resilience of the US labor market despite inflationary pressures and AI-driven disruption. Equity markets reacted negatively to the news on Friday morning due to fears of interest rate hikes by the Federal Reserve.
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