US stocks have surged towards record levels, driven by a rebound in the market after a steep fall in April. The S&P 500 closed above 6,000 for the first time since late February, thanks to a strong jobs report that calmed concerns about the economy.
A monthly US inflation report is set to be released on Wednesday, which could give insight into the impact of tariffs on the economy. Investors are waiting to see how other levies may ripple through the economy and whether they will lead to higher inflation.
The Consumer Price Index (CPI) report is one of the last key pieces of data before the Federal Reserve’s June meeting. Traders expect the Fed to hold interest rates steady, but there is uncertainty over whether this will be enough to stem a slowdown in growth.
Meanwhile, a sweeping tax-cut and spending bill under review in the US Senate has investors grappling with its potential impact on economic growth and the country’s debt burden. The legislation has also fueled a rift between President Trump and Tesla CEO Elon Musk, who has publicly opposed it.
Trade talks are also ongoing, with a 90-day pause on tariffs set to end on July 8. Trump plans to meet with Chinese officials in London on Monday to discuss a trade deal.
Source: https://www.reuters.com/business/wall-st-week-ahead-us-stocks-edge-toward-records-with-inflation-data-policy-2025-06-06