Weekly Economic Update
Last Week and the Economy
Last week our tracked stock indices recorded losses across the board following a significant tech-driven decline on Friday. The NASDAQ Composite led the downward movement with a weekly loss of 4.68%. The S&P 500 fell by 2.59% and ended a nine-week streak of gains. The Dow Jones Industrial Average lost a modest 0.32%, while the small-cap Russell 2000 Index and the international MSCI EAFE Index also declined by 2.94% and 1.41%, respectively.
National Unemployment Rate Holds Steady at 4.3%
The U.S. Bureau of Labor Statistics [BLS] released its May employment report on Friday. The national unemployment rate held at 4.3%. It has stayed in that narrow band since July 2025. The count of unemployed workers remained flat – near 7.3 million.
Hiring was concentrated in a few corners of the economy. Employers added 172,000 nonfarm jobs in May – more than double the consensus forecast. Leisure and hospitality led the gains, while local government and healthcare added the rest. On the other hand, financial activities experienced a net loss of jobs.
The labor force participation rate held at 61.8%, while the employment-population ratio barely budged at 59.2%. Further details are available in the U.S. Bureau of Labor Statistics database.
Manufacturing Sector Expansion Accelerates to Multi-Year High
The Institute for Supply Management published its monthly Manufacturing Report on Business last Monday. The Manufacturing Purchasing Managers’ Index [PMI] rose to 54.0% for the month of May – up from the 52.7% recorded in each of the previous two months. This reading indicates an accelerating expansion within the domestic industrial sector and marks its strongest growth since May 2022.
The details in the report also pointed toward expansion, as new orders rose to 56.8% from 54.1% in April. Production also picked up to 54.3% from 53.4%. The backlog of orders stayed in expansion territory, while edging up to 52.2%. Employment held below the neutral 50% line at 48.6%, but it contracted less than April’s 46.4%.
Raw materials costs stayed high, but the prices index eased slightly to 82.1% from 84.6% in April. Survey panelists kept their attention on logistics and trade policy. The Middle East conflict drew mentions in 42% of comments, while tariffs were noted in 18%.
Equity Markets Face Sharp Downturn Led by Technology Shares
U.S. equity markets fell sharply on Friday – interrupting a multi-week climb. The technology-heavy NASDAQ Composite dropped 4.18% during Friday’s regular session – marking its largest single-day percentage decline since April 2025. The S&P 500 Index fell 2.64% on the same day, which snapped a nine-week streak of gains. The Dow Jones Industrial Average also fell over 1% after reaching a record high on Thursday.
The damage fell hardest on artificial intelligence [AI] hardware and semiconductor stocks. Marvell Technology dropped more than 16%, and Micron Technology fell more than 13%. Advanced Micro Devices also lost more than 10%, while Nvidia closed about 6% lower. Bonds also sold-off, as the yield on the 10-year U.S. Treasury note rose to 4.54%.
The broad market contraction reached past U.S. borders. South Korea’s Kospi fell more than 5%, and crypto-mining companies tied to AI data-center buildouts also dropped sharply.
Data Sources for stock and index quotes: Yahoo Finance, WSJ
Trending Articles
How to Calculate Provisional Income (a.k.a. Combined Income)
August 14, 2025School of Social Security & Medicare
Your provisional income determines if Social Security benefits are taxable, so it is important to know how to calculate this figure.
5 Characteristics of a Quality Wealth Manager
June 15, 2023School of Financial Wellness
Looking for a quality wealth manager? We pulled together our list of the 5 most important qualities to consider during your search.
What are Required Minimum Distributions (RMD’s)?
July 21, 2023School of Saving and Investing
Required Minimum Distributions are minimum withdrawals that must be taken from retirement accounts once you reach a certain age.
Key Economic Data Points
| Data Point | Date | Current | Change from Prior Period | Next Report |
| Unemployment Rate | 05-2026 | 4.3% | No Change | July 2nd |
| FOMC Target Rate | 04-2026 | 3.50% – 3.75% | No Change | June 17th |
| GDP | Q1 2026 (revised) | 1.6% | +1.1 | June 25th |
| PCE Inflation | 04-2026 | 3.8% | +0.3 | June 25th |
Data Sources: U.S. Bureau of Labor Statistics, Federal Reserve, U.S. Bureau of Economic Analysis, U.S. Bureau of Economic Analysis
Weekly Quote:
Life doesn’t get easier or more forgiving, we get stronger and more resilient.
-Steve Maraboli – Author, Motivational Speaker
The Week Ahead – Economic Data & Events
Monday: Survey of Consumer Expectations
Tuesday: Advance International Trade in Goods, Trade Balance, NAR Existing Home Sales, Wholesale Trade
Wednesday: Consumer Price Index [CPI]
Thursday: Producer Price Index [PPI]
Friday: Michigan Consumer Survey (Preliminary), New York Fed Staff Nowcast
Weekly Reports: Mortgage Applications (Wednesday), EIA Petroleum Status Report (Wednesday), Jobless Claims (Thursday), EIA Natural Gas (Thursday), Fed Balance Sheet (Thursday), Baker Hughes Rig Count (Friday)
Source: New York Fed
The Week Ahead – S&P 500 Companies Reporting Earnings
Monday: The Campbell’s Company (CPB): PMO
Tuesday: The J.M. Smucker Company (SJM): PMO, Casey’s General Stores (CASY): AMC
Wednesday: Oracle Corporation (ORCL): AMC
Thursday: Adobe Inc. (ADBE): AMC, Lennar Corporation (LEN): AMC
Friday: No S&P 500 companies confirmed for this date.
AMC = After Market Close, PMO = Prior to Market Open
Source: Yahoo Finance
Weekly Tip:
Audit your subscriptions. A 10-minute audit, once a quarter, can save you hundreds a year.
Data Sources for stock and index quotes: Yahoo Finance, WSJ
Join Us for Our Next Meld University Events:
Last Week's Riddle and Answer
Last Week's Riddle:
I am so fragile that even saying my name breaks me. What am I?
Last Week's Answer:
Silence.
Meld Financial, Inc. is a registered investment advisor.
The information contained herein should not be construed as legal advice or a legal opinion on any factual situation. Its contents are intended for general information purposes only. Always consult with a competent professional service provider for advice on tax, accounting, and other financial matters specific to your situation.
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
Riddles used in this publication may originate from the books: Lateral Thinking Puzzles by Paul Sloane; or from Workspace Solutions, LLC.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the Nasdaq stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Please consult your financial professional for additional information.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.