Economic & labor data, S&P 500 target raises: Market Takeaways
US stocks (^DJI, ^IXIC, ^GSPC) end Wednesday's trading session mixed after private sector jobs data, reported by ADP, disappointed economist forecasts.
Yahoo Finance senior markets reporter Josh Schafer comes on Asking for a Trend to touch on the trading day's biggest market themes, including the wave of economic data published this week ahead of Friday's May jobs report and the Wall Street firms that have raised their S&P 500 (^GSPC) year-end targets.
To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.
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Yahoo
26 minutes ago
- Yahoo
The most popular stocks and funds investors bought in May
Signs of progress on US tariff agreements in early May offered some reprieve around trade tensions, prompting investors to be more "risk-on", driving stock markets higher. Following on from US president Donald Trump's pausing of many higher rate tariffs in April, the UK and US announced a trade deal on 8 May. This marked the Trump administration's first pact since it unveiled sweeping tariffs and included an agreement to lower levies on a certain number of UK car exports, among other points. Days later, the US and China announced that they had agreed to temporarily slash tariffs on each other's imports by 115% for 90 days, marking a major de-escalation in tensions between the two countries. However, the break from tensions was short-lived, as on 23 May Trump then threatened to raise tariffs to 50% on imports from the European Union (EU) and to put a 25% levy on Apple (AAPL) products unless iPhones are made in the US. Following conversations with European Commission president Ursula von der Leyen, Trump then said a few days later he had decided to hit pause on imposing higher tariffs on the EU until 9 July. Read more: ECB cuts interest rates for eighth time in a year Later last week, a US trade court then moved to block Trump from imposing his sweeping tariffs, having ruled that the president exceeded his authority when he used an emergency law to issue global reciprocal tariffs on US trading partners. A day later, however, an appeals court temporarily halted this order, allowing Trump to keep collecting tariffs for now. Capping off the month's trade developments, Trump said that he would double tariffs to 50% on imports of steel and aluminium. On the same day, Trump also claimed China had "totally violated" its trade truce with the US, an accusation which China fired back at Washington on Monday. After a call with China's president Xi Jinping on Thursday, however, both countries pledged to restart tariff and trade talks in the coming days. At the end of the month, investors were also focused on Nvidia's (NVDA) first quarter earnings, which came out on 28 May. Expectations have become increasingly high around the chipmaker's earnings, but the results appeared to pass muster this time round, with shares rising on the back of their release. In fact, the Magnificent 7 – comprised of Nvidia, as well as Tesla (TSLA), Meta (META), Apple (AAPL), Alphabet (GOOG, GOOGL), Microsoft (MSFT) and Amazon (AMZN) – were responsible for 62% of the S&P 500's (^GSPC) gains in May, according to financial research firm DataTrek. This contributed to the US blue-chip index clocking its best month of trading in May since 1990, though it is still less than 1% in the green year-to-date. Other markets also continued to rebound on tariff progress last month, with the UK's FTSE 100 (^FTSE) now up nearly 8% year-to-date, while the pan-European STOXX 600 (^STOXX) has advanced 9.3% so far this year. With that mind, here were the most popular stocks and funds with investors last month. Richard Hunter, head of markets at Interactive Investor, said: "May was an easier ride for investors, even though market movements continue to be dominated by tariff twists and turns." 'The early announcement of a trade deal between the US and the UK gave rise to hopes that others could follow in short order, although subsequent events put paid to that optimism," he said. "A court ruling that the tariffs were not legal was replaced by a temporary removal of that blockage, while in the final weekend in May the aggressive rhetoric towards other trading partners resumed." Oil major BP (BP.L) topped the most bought lists for Interactive Investor, Hargreaves Lansdown and Bestinvest, with investors appearing to take advantage of the fact that shares are trading at their lowest point in three years. Shares fell after BP (BP.L) reported that profits almost halved in the first quarter. The company reported an underlying replacement cost profit – a key metric used as a proxy for net profit – of $1.38bn (£1.02bn), falling short of the $1.53bn forecast by analysts polled by LSEG (LSEG.L). The figure also marks a 49% decline from the $2.7bn posted in the same period last year. Read more: UK 'bargain' stocks that have outperformed the market long-term The company has come under pressure from the decline in oil prices, which have fallen amid concerns that a tariff-induced economic slowdown would weigh on demand for fuel. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "BP's shares came under more pressure after its first set of quarterly results since its strategy reset unimpressed the market. "Despite reductions in costs and investment expenditure, debt moved in the wrong direction. But plenty of investors appear hopeful that the transformation plan will start to bear fruit and have been buying shares in the hope of an uplift." Chipmaker Nvidia (NVDA) remained another top 10 stock buy for investors on Interactive Investor, Hargreaves Lansdown, Robinhood (HOOD) and Bestinvest's platforms. Following a drop in Nvidia's (NVDA) share price in April, as Trump's trade war ramped up, the stock recovered in May amid the reprieve on tariffs. The stock then climbed higher towards the end of the month, after the company unveiled a number of new technologies at the Computex tech expo in Taiwan, including developments around its robotics capabilities, among other updates. Stocks: Create your watchlist and portfolio This came a week before the Nvidia's (NVDA) update on its first quarter performance, which have become the most highly anticipated results of the earnings season, given the chipmaker's role as an enabler of AI. For the first quarter, Nvidia (NVDA) posted revenue of $44.1bn, which topped estimates of $43.3bn, though earnings per share of $0.81 were below expectations of $0.93. Shares popped on the back of the results, despite Nvidia (NVDA) warning of a $4.5bn charge from controls on its exports of its H20 chips to China. Excluding this charge, Nvidia (NVDA) said that earnings per share would have been $0.96 for the first quarter. "There remains significant appetite for chip star Nvidia (NVDA), given the demand for its products to power the AI revolution keeps powering upwards," said Streeter. "The company beat revenue expectations again last month, despite fresh restrictions on its exports to China." Investors continued to put money behind defence stocks last month, a trade which has become popular as European governments have pledged to spend more on this area. FTSE 100-listed firm Rolls-Royce (RR.L) remained one of the most popular stocks for investors in May, appearing on the lists of Interactive Investor, Hargreaves Lansdown and Bestinvest. BAE System (BA.L) also appeared on Hargreaves Lansdown and Bestinvest's lists, as another UK-listed company in the sector. "There's an expectation that the EU-UK trade deal will open up deep new pools of funding for British defence companies, as efforts are made to counter the heightened threat from Russia," said Streeter. Investors also continued to invest in Strategy Incorporated (MSTR), the software firm which is the world's largest corporate holder of bitcoin (BTC-USD). "It was an up-and-down month for MSTR with bitcoin highs supporting the share price, only for valuation concerns to take the shine off the crypto rise," said Robinhood (HOOD) UK lead analyst Dan Lane. "Robinhood (HOOD) UK investors are keeping the faith for now, with Coinbase (COIN) on the radar too after being included in the S&P 500 index during the month." UK high street stalwart Marks & Spencer (MKS.L) was another stock that investors appeared to take the opportunity to snap up amid a knock to its share price. The stock was on the most bought lists of Interactive Investor, Hargreaves Lansdown, Bestinvest and AJ Bell (AJB.L) in May. "Marks and Spencer's (MKS.L) cyber-attack disrupted stores and online ordering, causing a 16% drop in shares before starting to recover mid-month," said Hargreaves' Streeter. "Sentiment has been helped by an update showing the retailer is fighting to restore its systems from a position of resilience after a 22% uplift in underlying pre-tax annual profit." Passive funds continued to dominate platforms most bought lists, with US and global funds accounting for many of investors' popular choices. Funds that appeared on multiple lists, included Vanguard FTSE Global All Cap Index (0P00018XAR.L) and HSBC FTSE All World Index (0P00013P6I.L), which are exposed to the Mag 7 tech giants, among other major global companies. Read more: Stocks that are trending today While markets did see a recovery last month, Hargreaves Lansdown head of fund research Victoria Hasler said that "volatility abounded in May, with more tariff drama, cyber attacks and economic uncertainty." "This led some investors to turn to active managers to navigate the difficult environment, and the Artemis Global Income fund topped our list of most bought funds," she said. "Income strategies generally tend to be a little more defensive than the market as a whole, and the Artemis fund has a value bias which could have attracted investors. The other active fund in the top ten was also a global offering – the Rathbone Global Opportunities fund." Read more: How next week's spending review could impact your finances What is the Pension Investment Review? Bank of England governor expects interest rates and pay to decrease this yearError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27 minutes ago
- Yahoo
Why Shares of Oklo Stock Soared 122% Last Month
Oklo is soaring because of narratives around nuclear energy and an executive order. The company aims to get its new reactors to market by 2028, but that may prove to be aggressive timing. The company generates zero revenue but has a market cap of $6.8 billion. 10 stocks we like better than Oklo › Shares of Oklo (NYSE: OKLO) sank this week, according to data from S&P Global Market Intelligence. The company aiming to build what it calls fast-fission nuclear reactors is benefiting from nuclear energy executive orders and a global renaissance for the energy category. Up almost 400% since going public through a special purpose acquisition company (SPAC), the company now has a market cap of $6.8 billion and zero revenue. Here's why shares of Oklo soared in the month of May. Rising demand for electricity has companies in the artificial intelligence (AI) sector looking for truly reliable and renewable energy. Nuclear energy is the only type of energy that checks off both criteria. Large technology companies investing in data centers, like Amazon and Microsoft, are signing commitments to try and get more nuclear power used in their operations. The White House just released an executive order around Nuclear Power, saying the industry in the United States needs to be reinvigorated. All of this talk around nuclear power has stocks such as Oklo soaring. The company's founder was at the executive order signing by President Trump, and the company even put out a press release about the matter. It is aiming to build small fission reactors with recyclable material and aims to have plant operations begin at its first site in Idaho by late 2027 or early 2028. Until then, the company is not generating any revenue. Its stock is all riding on the future and hopes from shareholders that the company can spin itself into one of the nuclear energy leaders of the next few decades. Oklo wants to become a nuclear power giant through its innovative designs. The problem remains around approvals and cash burn. It has a free cash flow burn of $44 million and $200 million in cash on the balance sheet. It says that it aims to get its plant underway by 2028 at the latest, but it has not gotten any approvals from the Nuclear Regulatory Commission (NRC). Competitor NuScale Power Corporation has approval and still doesn't think it can get its reactors up and running until 2030. The timelines don't match up. Investing in pre-revenue stocks is mighty dangerous. Oklo has no sales, is burning a lot of cash, and has never proven its designs work. There are no approvals by the NRC. The stock has a market cap of $6.8 billion, built on castles in the air. If you buy this stock, you are taking a huge risk with your portfolio. Before you buy stock in Oklo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oklo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends NuScale Power and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why Shares of Oklo Stock Soared 122% Last Month was originally published by The Motley Fool
Yahoo
37 minutes ago
- Yahoo
Investors are already looking to July's jobs report — or even August's
Friday's jobs numbers will provide the latest glimpse of how a high-tariff regime and the uncertainty surrounding trade policies will influence unemployment figures. But like several other key indicators that look backward in time to help us steer through the present, it's their future datasets that will reveal a fuller picture. For the labor market, those numbers may not arrive until July or August — a time by which many investors hope a new tariff regime will already be established. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy A curious hallmark of this stutter-step trade policy shift, with its dealmaking and delays, is that the effects of a "Liberation Day" initiated this spring won't be meaningfully felt until deep into summer, or perhaps longer, no matter how Friday's data stacks up. 'While we think it is still too soon for the jobs report to capture the adverse impact of trade policy — that impact will show up in the employment reports for July and August — the overall cooling trend suggests that employment and wage growth will be insufficient to completely absorb that impact,' wrote RSM chief economist Joe Brusuelas in a note on Thursday. Resilience has been a keyword of the US economy in the COVID era. And it has applied just as well to the early days of the trade conflict, reflecting a trend of layoffs remaining low and business activity holding steady. But as my colleague Josh Schafer reported, data points on hiring and manufacturing this week have shown signs of slowing as tariffs make their mark. Analysts aren't forecasting a collapse in the labor market. But the concepts of hesitancy and paralysis are gaining traction as employers realize a reasonable strategy during this moment of uncertainty is to do nothing. And lest we forget, the labor market had been cooling prior to the trade war after quarters of restrictive policy as the Fed's higher-for-longer interest rates curbed inflation. But a prolonged hiring pause can have repercussions too. "We are approaching an inflection point, where the concerns of stagflation can seep into the greater market narrative," said Chris Zaccarelli, chief investment officer at Northlight Asset Management. "We are seeing dropping productivity and slower growth, while also seeing signs of higher (or sticky) inflation," he said in a note on Thursday. Waiting to see how tariff policy shakes out can itself produce negative signals. But what might seem like an unspoken, collective hiring freeze could just be the prudence of managers biding their time, and as the job openings showed us, companies are taking advantage of the minimal cost of merely being ready to hire. The flip side is that a state of calm in the data could be masking the pain to come, functioning like a convenient illusion. Either way, the market — and the Fed — are once again left to continue their wait for more data. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
