Market Brief — June 1, 2026

US equities advanced with the S&P 500 (SPX) up 0.3%, the Nasdaq (^IXIC) up 0.4% and the Dow (DJIA) up 0.1% as strength in technology offset weakness in defensives and real estate. European indices slipped, with the CAC 40 (FRA40) down 0.4%, the FTSE 100 (UKX) down 0.7% and the DAX (DAX) down 0.4% while swaps priced 80%–90% odds of June ECB and Bank of Japan rate hikes and benchmark crude traded near $92 per barrel. In Asia, China’s RatingDog Manufacturing PMI for May printed 51.8 versus 52.2 previously and index 000001.SS finished flat at 0.0%, leaving regional risk sentiment stable ahead of the US ISM Manufacturing PMI release.

Technology and energy led, with VGT up 2.6% and XLE up 1.8%, while utilities XLU fell 3.0%, consumer discretionary XLY lost 2.2% and real estate VNQ declined 1.7%. Fluence Energy (FLNC) surged 43.7% and Taylor Morrison (TMHC) jumped 22.3%, while MongoDB (MDB) and Twilio (TWLO) gained around 20%. On the downside, Polestar Automotive (PSNY) dropped 17.1%, Redwire (RDW) fell 15.8%, and Nuvalent (NUVL) and Rocket Lab (RKLB) slid between 14% and 16%.

China’s RatingDog Manufacturing PMI for May printed 51.8, down from 52.2 and slightly above the 51.4 consensus, while markets looked ahead to the US May ISM Manufacturing PMI with forecasts around 53 versus a prior 52.7. Swaps priced 80%–90% odds of June rate hikes at the ECB and Bank of Japan even as Polymarket odds implied a 69% probability that the Federal Reserve will keep policy unchanged through 2026 and the Bank of Canada policy rate held at 2.25%. Benchmark crude oil rose over 5% to about $92.2 per barrel as Middle East uncertainty persisted, with the US Dollar Index near 99.05, the 10-year Treasury yield around 4.45% and gold easing from the $4,600 area.

FedEx Freight (FDXF) began trading on the NYSE after its spinoff, opening 2.3% higher at $164 but closing down 6.8% at $149.53 after a volatility halt. Oil markets reacted to escalating US-Iran tensions, with WTI futures rising over 7% intraday to $94.23 per barrel and Brent climbing more than 6% to $96.90 as Tehran signaled it would halt talks with the United States and threatened to close the Strait of Hormuz. Nvidia’s launch of Arm-based N1X 'RTX Spark' and Vera CPUs for AI PCs supported its shares, which rose about 4.3%, while competitors Intel (INTC) and AMD fell, and Brussels’ probe into Wise Europe over roughly €500 million in suspicious flows weighed on its London-listed stock. Freeman Health System completed its acquisition of Northwest Health, Cox Automotive closed its purchase of Fullpath, Nexans finished acquiring Republic Wire in the US, and Parex Resources completed its acquisition of Frontera E&P to become Colombia’s largest independent oil and gas producer, while CECO Environmental closed its acquisition of Thermon Group Holdings. On the announced side, Servier agreed to acquire Edgewise Therapeutics’ muscular dystrophy business, SOLAI moved to buy a 51% stake in NEURALAND, People Incorporated proposed to acquire MGM Resorts International for $48.30 per share in cash, and OMNI Fiber and SupplyOne announced deals to acquire Citizens Fiber and Compass Packaging Solutions, respectively.