US equities moved decisively lower last week, as a combination of interest‑rate caution, weakness across the artificial intelligence (AI) value chain and ongoing geopolitical uncertainty weighed on sentiment. The most pronounced declines were seen in the tech‑heavy Nasdaq, which fell -4.7% (in dollar terms), with momentum turning mid‑week following what was perceived to be a disappointing earnings update from semiconductor giant Broadcom. Selling pressure intensified into Friday, as the latest labour‑market report, which showed a re‑acceleration in job creation, prompted renewed concern that the Federal Reserve may need to keep policy tighter for longer. Geopolitical risks also remained in focus, with continued fragility in the US‑Iran ceasefire adding to volatility. The broader S&P 500 declined -2.6%, while in fixed income markets, treasury yields moved higher across the curve. The closely monitored 10-year security concluded the week eleven basis points (bps) higher at 4.54%.

Equity performance outside the US also moved lower over the week, although declines were more modest in magnitude. In Europe, the MSCI Europe ex‑UK index fell -0.5% (in euro terms), with weakness in German equities offsetting more resilient performance in France. A similar pattern was evident in the UK, where losses were seen across the market‑cap spectrum. The FTSE 100 declined -0.4%, while the more domestically focused FTSE 250 underperformed, falling -1.6%. In Asia, sentiment was mixed. Chinese equities weakened, with the Shanghai Composite falling -1.0% (in renminbi), while Hong Kong markets also declined despite pockets of strength in technology names, reflecting a backdrop of mixed economic data. By contrast, Japan bucked the broader trend, with the Nikkei 225 rising +0.4% (in yen terms) following the prior week’s sharp retracement. Currency moves remained a key focus, with the yen weakening further and briefly moving above ¥160 against the dollar, despite significant intervention by authorities, who reportedly deployed more than $70.0bn in May¹.

Finally, commodity markets were mixed over the week, with precious metals coming under notable pressure while energy prices edged higher. Gold fell sharply, declining -5.2% to $4,354 an ounce, extending its recent weakness and erasing the year‑to‑date gains that had built during the strong rally earlier in the year. Having approached record levels in January, the reversal reflects a shift in market dynamics, with renewed inflation concerns linked to the Middle East conflict pushing rate expectations higher. By contrast, oil prices were more resilient last week. Brent crude rose +1.3% to $93.20 a barrel, with direction once again driven by geopolitical developments in the Persian Gulf and the evolving outlook.

¹ T. Rowe Price – Global Markets Weekly Update, 05/06/2026

SJP Approved: 09/06/2026

Past performance is not indicative of future performance.

The value of an investment with St. James’s Place Investment Management Limited may fall as well as rise. You may get back less than the amount invested.

The value of investments may fall as well as rise purely on account of exchange rate fluctuations.

The information contained does not constitute investment advice.

Full advice should be taken to evaluate the risks, consequences, and suitability of any prospective investment. Opinions provided are subject to change in the future as they may be influenced by changes in regulation or market conditions. Where the opinions of third parties are offered, these may not necessarily reflect those of St. James’s Place Investment Management Limited.

FTSE Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2025. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE Russell®” is a trademark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data, and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor, or endorse the content of this communication.

MSCI Source: Certain information contained herein, including without limitation text, data, graphs, charts (collectively, the “Information”) is the copyrighted, trade secret, trademarked and/or proprietary property of MSCI Inc. or its subsidiaries (collectively, “MSCI”), or MSCI’s licensors, direct or indirect suppliers or any third party involved in making or compiling any Information (collectively, with MSCI, the “Information Providers”), is provided for informational purposes only, and may not be modified, reverse-engineered, reproduced, resold or redisseminated in whole or in part, without prior written consent.
S&P & Dow Jones Source: © S&P Dow Jones LLC 2025. All rights reserved.

Rowan Dartington is a trading name of St. James’s Place Investment Management Limited which is part of St. James’s Place PLC. St. James’s Place Investment Management Limited is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales No. 02752304 at St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom.