Next Week Play After Strong Positive Finish Marking Second Consecutive Weekly Gain

The U.S. stock market experienced a strong positive performance for the week ending 06 June 2025, marking the second consecutive week of gains for the major indexes and the fifth time in seven weeks that they have risen.

An eventful week in the stock market saw a notable 14.3% decline in $Tesla Motors(TSLA)$ shares following a public clash between Elon Musk and President Trump regarding a reconciliation bill.

Here is a breakdown of the key insights

Major Index Performance (Week Ending 06 June 2025)

S&P 500: Rose 1.5% for the week. It closed just above 6,000 points on Friday, a level not seen since February 21, and is now up 2% since the start of 2025, making it the top performer among the three major indexes year-to-date.

Dow Jones Industrial Average: Gained 1.2% for the week.

Nasdaq Composite: Increased by 2.2% for the week. It has gained 1.1% so far this year.

Despite this, the market remained resilient, ending the week positively due to the strength of small-cap and mega-cap stocks.

$NVIDIA(NVDA)$ and other semiconductor stocks led gains, supporting market performance.

The stock market showed resilience amid economic fluctuations, with sector performance pointing to optimism in technology and energy.

The positive employment report underlined the strength of the U.S. labor market, diminishing fears of economic slowdown.

Note Yield Ended Higher For The Week

The 10-year Treasury note yield increased to 4.51% by week's end, reflecting market dynamics.

Key Drivers and Themes

Positive Jobs Report: A highly anticipated monthly report on the labor market on Friday reinforced confidence in the health of the economy, contributing to a surge in stocks.

Easing Tariff Concerns: Investor concerns about President Trump's tariff plans have eased in recent months, and progress on trade talks between the U.S. and China were noted, which helped the market recover. The S&P 500's strong May performance was boosted by a "soft stance on tariffs."

Strong Corporate Earnings and Economic Data: Generally strong corporate earnings and robust economic data have provided a sound footing for the market.

Mega-cap Technology Stocks: Many large tech companies performed well. Alphabet (GOOG) and Amazon (AMZN) climbed roughly 3%, while Apple (AAPL) and Meta Platforms (META) were each up nearly 2%. Nvidia (NVDA) gained 1%, and Microsoft (MSFT) rose slightly to a new all-time high.

AI-related Stocks: Shares of data analytics software provider Palantir (PLTR) jumped 6.5%, leading S&P 500 advancers, while chipmaker Marvell Technology (MRVL) rose about 5% and Arm Holdings (ARM) added nearly 3%, benefiting from upbeat sentiment after strong AI demand shown in Broadcom (AVGO) earnings.

Tesla Volatility: Tesla (TSLA) shares had plunged on Thursday due to a public spat between CEO Elon Musk and President Donald Trump but rebounded on Friday as the feud showed signs of de-escalation.

Bond Market: The yield on the 10-year Treasury note jumped to 4.51% from 4.39% at Thursday's close, hitting a two-week high.

Currencies: The U.S. dollar index rose 0.5% to 99.20.

Commodities: Gold futures were down 1.3% at $3,330 an ounce, while West Texas Intermediate (WTI) crude oil futures rose 2.2% to $64.75, gaining ground for the second day in a row and trading at their highest level since mid-April.

Next Week Play - Broadcom, Amazon and Grab

$Broadcom(AVGO)$ announced a forecast of $5.1 billion in AI semiconductor revenue for Q3 2025, driven by accelerating demand for AI networking. The company reported a record $15 billion in Q2 revenue, marking a 20% year-on-year increase, with AI semiconductor revenue up 46% year-on-year. This optimistic outlook has bolstered investor confidence in the tech sector.

$Amazon.com(AMZN)$ is also testing AI-powered humanoid robots for deliveries, developing a "humanoid park" for testing in San Francisco. This initiative aims to enhance delivery efficiency and expand Amazon's robotics capabilities.

I will be playing the option for Amazon again as Amazon have once again proving that the bulls are in control, as we saw RS (relative strength) remaining strong at 83, and there is still room on the RSI momentum side, as the bulls continue to build a daily uptrend continuation, I am looking for AMZN to clear the 215 level, before we see a significant upside to the 200 level.

With another indicators confirmation, we are seeing the bulls defending 26-EMA and 50-EMA well for the past two weeks, this have given investors much confidence despite last week development which shake the market a bit, I can see that the bulls are making a large attempt to the daily uptrend expansion which could well bring AMZN to the 220 level.

I am holding my AMZN position, will play option (SELL PUTS) next week, to take advantage of AMZN continued rise, I will share in another article over the weekend. Do stay tuned.

$Grab Holdings(GRAB)$ and GoTo (GTOFF) are in discussions for a potential $7 billion merger, with Indonesia's sovereign wealth fund considering a minority stake. This move aims to address regulatory concerns and strengthen Grab's position in the Indonesian market.

Summary

The market showed resilience and a bullish trend, with major indexes nearing or returning to record highs. While some analysts note that the market is currently trading with a minimal margin of safety and heightened volatility is expected in coming quarters, the prevailing sentiment is that the stock market is on a better path than earlier in the year.

I foresee that we could see rally continue next week for some of the tech stocks as investors are pushing past the tariffs turmoil and focus on more on long term growth potential from the AI demand.

Appreciate if you could share your thoughts in the comment section whether you think we can see continued market performance next week making it a third consecutive strong finish.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.

# 💰 Stocks to watch today?(3 July)

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  • mars_venus
    ·06-09
    Great article, would you like to share it?
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  • mars_venus
    ·06-09
    Great article, would you like to share it?
    Reply
    Report