Weekly wrap-up – Despite another better-than-expected jobs report for the third consecutive month, stocks pulled back this week, with the S&P 500 posting its first meaningful weekly decline after several consecutive weeks of gains. Much of the weakness was tied to renewed concerns over valuations, profit taking after the market’s strong rebound, and lingering uncertainty surrounding interest rates, tariffs, and global economic growth. Investors also reacted to mixed economic data and rising Treasury yields earlier in the week, which put pressure on technology and other growth-oriented sectors that had led the recent rally.
Even though stock markets had a down week, the broader market has remained resilient over the past several months as investors continue to anticipate eventual Federal Reserve rate cuts and a soft-landing economy. Employment data has generally remained stable, consumer spending has held up reasonably well, and corporate earnings have largely exceeded expectations. While volatility may continue in the near term, many analysts still believe the long-term trend for equities remains constructive provided inflation continues to moderate and the economy avoids a significant slowdown.
Mortgage rates – Every Thursday, Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week.
The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of June 4, 2026, were as follows: The 30-year fixed mortgage rate was 6.48%, down from 6.53% last week. The 15-year fixed was 5.79%, down from 5.87% last week.
The graph below shows the trajectory of mortgage rates over the past year.
U.S. employers added 172,000 new jobs in May – The Bureau of Labor and Statistics reported that 172,000 new jobs were created in May, far surpassing analyst’s expectation of 80,000 new jobs. The unemployment rate held steady at 4.3%, for the third consecutive month. Average hourly wages increased 3.4% from one year ago, the lowest year-over-year increase since May 2021.
Average hourly wages increased 3.4% from one year ago, the lowest year-over-year increase since May 2021.
Stock markets – The Dow Jones Industrial Average closed the week at 50,866.78, down 0.4% from 51,032.36 last week. It is up 5.8% year-to-date from 48,063.29 on December 31, 2025. The S&P 500 closed the week at 7,383.74%, down 2.7% from 7,589.06 last week. The S&P is up 7.9% year-to-date from 6,845.50 on December 31, 2025. The Nasdaq closed the week at 25,709.43, down 4.7% from 26,972.62 last week. It is up 10.6% year-to-date from 23,241.99 on December 31, 2025.
U.S. Treasury Bonds – The 10-year treasury bond closed the week yielding 4.55%, up from 4.45% last week. The 30-year treasury bond yield ended the week at 5.01%, up slightly from 4.99% last week. We watch bond yields because mortgage rates follow bond yields.
Next week the government will release the Consumer Price Index for May. That will show how much rising gas and energy costs are causing inflation to rise. That will have an impact on interest rates.
