The biggest story of the week was Friday morning’s May employment report, which came in well above expectations. The economy added 172,000 jobs in May, far surpassing the consensus estimate of around 80,000. April’s reading was also revised higher, from 115,000 to 179,000, meaning the last two months together added 93,000 more jobs than initially reported. The unemployment rate held steady at 4.3%, and job gains were broad-based, led by leisure and hospitality (70,000), local government (55,000), and healthcare (35,000). Manufacturing added 7,000 jobs, a welcome sign for that sector. The report points to a labor market that remains resilient despite ongoing uncertainty around trade policy, energy prices, and the conflict in the Middle East.
Earlier in the week, the ADP National Employment Report showed private sector payrolls grew by 122,000 in May, led by small businesses with fewer than 50 employees. Annual pay for those staying in their jobs rose 4.4%, unchanged from April. On Monday, the ISM Manufacturing Index came in at 54.0 for May, its highest level since May 2022 and up from 52.7 in April. An ISM Manufacturing reading above 50 indicates expansion in the manufacturing sector, and below 50 indicates contraction. In other words, this is good news! New factory orders expanded for a fifth consecutive month as production continued to improve. One area worth watching, the prices paid component, remains elevated hovering around 82. This signals that input cost pressures in the factory sector have not fully eased just yet.
Consumer sentiment continues to sit near record lows, weighed down by energy prices and anxiety around the Iran conflict. Yet the stock market tells a different story, with the S&P 500 hitting new all-time highs again reaching just over 7,600 at one point this week. Also worth noting is a visible shift in market leadership. On Thursday, the Dow surged over 875 points to a fresh record, led by healthcare, financials, and real estate, while technology stocks pulled back. This kind of rotation, where money moves away from tech and into other areas, has been building throughout 2026 and can be a healthy sign of a broadening rally.
Interesting to Note
A researcher taking a casual walk through a cemetery in Ithaca, New York recently stumbled onto what may be one of the largest ground-nesting bee aggregations ever documented, roughly 5.5 million bees living beneath the soil. The discovery was entirely accidental; nothing on the surface suggested what was underneath. Scientists are now studying the site to better understand how ground-nesting bees form these massive communities and what it could mean for pollinator conservation. At a time when bee populations have faced significant pressure, finding a thriving colony of this size is a welcome reminder that nature can still surprise us in the best possible way.
Looking Ahead
Apple’s Worldwide Developers Conference (WWDC): Apple kicks off its annual developer conference on Monday, June 8, running through June 12. The keynote begins at 1:00 p.m. ET. This year’s event is expected to put AI front and center, with anticipated previews of iOS 27, macOS 27, and deeper integration of Google’s Gemini models into Siri and Apple Intelligence features. For investors, WWDC is worth watching as a signal of where Apple is placing its chips in the AI race.
FOMC Meeting (June 16–17): The Federal Reserve meets in two weeks under new Chair Kevin Warsh. Markets are pricing in virtually no chance of a rate move at this meeting. With the labor market remaining stronger than expected, the Fed is likely to hold steady and monitor how elevated energy prices and inflation feed through to the broader economy in the months ahead.
ISM Services Index: Released Monday, June 8, this reading will offer a timely look at the health of the service sector, which accounts for the largest share of U.S. economic activity.
Have a wonderful weekend!
Written by: Chris Wasson CFP®
Sources:
BLS Employment Situation — May 2026
ISM Manufacturing PMI — May 2026
Charles Schwab: Consumer Sentiment vs. Markets
Trading Economics: U.S. Markets
Broadcom Q2 FY2026 Earnings Release
Snowflake Q1 FY2027 Earnings Release
ScienceDaily: 5.5 Million Bees Found Underground
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