Stock market optimism builds: will inflation and GameStop earnings deliver?

The stock market closed the week on a high note, with the S&P 500 rising 1% to surpass 6000 for the first time since February 21.
The Dow Jones Industrial Average gained 443 points, or 1.1%, while the Nasdaq composite led major indexes with a 1.2% increase.
"The market rallied on Friday after the Labor Department said the U.S. economy added 139,000 nonfarm jobs in May," easing concerns that tariffs and immigration crackdowns were hurting the labor market.
President Donald Trump's announcement of upcoming U.S.-China trade talks scheduled for Monday further boosted investor confidence.
"Stocks picked up steam after President Donald Trump announced U.S. and Chinese officials will meet on Monday to discuss trade," signaling hopes for a thaw in trade tensions.
Despite this optimism, uncertainty remains as investors await key inflation data and earnings reports from companies like GameStop (GME) and Oracle (ORCL) that could influence market direction.
"Inflation data and reports from GameStop (GME) and Oracle (ORCL) loom in the week ahead," highlighting the factors that could either sustain or dampen the current bullish sentiment.
Bond markets showed a contrasting trend, with yields on the 2-year Treasury note rising to 4.04% as traders shifted toward riskier assets.
"Bonds, on the other hand, struggled as traders turned to riskier assets. The yield on the 2-year Treasury note rose to 4.04%."
Overall, the stock market appears forward-looking, pricing in a potential easing of trade fears despite ongoing tariff uncertainties.
"While there is still uncertainty over tariffs, the stock market is forward looking and has been pricing in an eventual thawing of trade fears."

Stock markets rallied with the S&P 500 surpassing 6000, boosted by a benign jobs report and upcoming U.S.-China trade talks. Investors now await inflation data and earnings from GameStop and Oracle to gauge if optimism will hold amid ongoing tariff uncertainties.