Stocks soar Friday: Can the rise repeat itself this week?

Dubai: Global stock markets wrapped up last week on a high note, thanks to better-than-expected U.S. jobs data that eased fears of an economic slowdown.

However, investors heading into the week of June 9–13 are now bracing for mixed signals — and the outcome will likely depend on how markets digest key developments around inflation, central bank policy, and global trade tensions.

US stocks surged to their highest levels since February after May’s economic data report narrowly beat expectations. While job growth moderated and previous months were revised lower, the numbers were still enough to ease recession worries. That was good news for bulls who had feared the worst after a week of weak hiring data.

In Europe, stocks also extended gains on optimism that U.S.-China trade talks may restart soon. President Trump hinted that negotiators from both sides would talk on Monday, giving investors a glimmer of hope that tensions might cool.

Asia-Pacific markets, meanwhile, were mixed. Investors there are still assessing what a recent call between Trump and Chinese President Xi Jinping might actually lead to.

The key question now is how markets will react to signs that the U.S. Federal Reserve may not be in a hurry to cut interest rates. The stronger-than-expected labor report helped the Fed buy more time — but it also reduced the chance of two rate cuts this year, a bet many investors had made. This could create short-term volatility in markets.

Adding to the uncertainty, Trump has renewed his push for the Fed to cut rates by a full percentage point, saying it would support the economy. However, unless inflation falls further, Fed Chair Jerome Powell may find it difficult to justify a rate cut — let alone one that aggressive.

For stock market investors, the near-term outlook is cautiously optimistic. While economic data is holding up and geopolitical tensions could ease, much will depend on what signals come from the Fed over the next few weeks. Expect markets to stay sensitive to inflation numbers, central bank commentary, and any updates on US-China relations.

If positive sentiment from Friday carries over, we could see more gains early this week — but don’t be surprised if markets get choppy again as investors reassess the odds of rate cuts and economic resilience.