Traders work at the New York Stock Exchange on June 4, 2025.
NYSE
Here are two statements that, on the surface, may appear contradictory:
The U.S. labor market is weakening, with the number of jobs in June actually decreasing.The U.S. stock market is hitting all-time highs, with the Nasdaq Composite being the latest index to do so on Monday.
Why do those premises sit together uneasily?
Well, a slowdown in jobs growth implies a faltering economy, which has generally been bad for stocks. When people lose their jobs — or simply feel like they can’t afford to buy goods and services — corporate revenue falls. And those numbers are what, fundamentally, stock prices are based on.
But major indexes closed higher Monday, despite news of a weaker-than-expected jobs market in August. Of course, the prospect of rate cuts boosted investor sentiment.
A closer look at the individual movements of stocks, however, might provide another explanation for that. Technology firms — and artificial intelligence companies such as Broadcom and Nvidia, in particular — led the rise.
Investors, then, might have also shrugged off the August jobs report because they could be aware that the advent of AI will bring with it not just job losses, but also the end of the career ladder. Salesforce last week revealed it had cut 4,000 jobs because of AI, while Klarna in May said AI helped the company shrink its workforce by about 40%.
So, the implication — but a highly speculative and far-fetched one! — is that job losses could, in some ways, indicate that AI is working as intended — good for the companies, not so much for job seekers.
The Nasdaq Composite closes at a record high. On Monday, the tech-heavy index rose 0.45%, alongside gains in the S&P 500 and Dow Jones Industrial Average. Japan’s Nikkei 225 also hit a fresh high Tuesday, breaking the 44,000 level, but gave up gains later in the session.
Refunds could hit $1 trillion if tariffs deemed illegal. That figure, provided by U.S. Treasury Secretary Scott Bessent, included projections until June 2026, which is the typical time frame for a decision by the Supreme Court.
India urges BRIC partners to address trade deficits. The country’s External Affairs Minister S. Jaishankar made those comments at a virtual summit Monday. At the same event, Chinese President Xi Jinping called on BRICS members to cooperate in the face of the U.S.’ tariffs.
Mistral AI is valued at 11.7 billion euro ($13.8 billion). In a recently concluded funding round, Dutch chipmaker ASML pumped 1.3 billion euro in the French AI firm as lead investor. The round more than doubled Mistral AI’s valuation from the previous year.
[PRO] Morgan Stanley thinks this stock has nearly 70% upside. The Wall Street bank on Monday initiated research coverage on a financial exchange which launched an initial public offering last year — and assigned it an “outperform” rating.
A Boeing sign sits on a building near Boeing Field, as trade tensions escalate over U.S. tariffs with China, in Seattle, Washington, U.S. April 22, 2025.
David Ryder | Reuters
Performative or pragmatic? Why Boeing planes feature so much in Trump trade deals
Since U.S. President Donald Trump announced tariffs in April, a pattern has emerged. Countries that strike trade deals with the U.S. often announce large orders for Boeing jets.
Why is Boeing such a fixture in Trump’s deals? The first reason: it looks good for the president. Aircraft orders also come with several other advantages. Unlike commodities such as steel or rice, planes are less likely to ruffle any feathers when it comes to domestic industries.
— Lim Hui Jie