This Weekly Financial Markets Update reviews the top market headlines: May Jobs Report Exceeds Expectations, Business Activity Expansion Continues in May, Durable Goods Orders Accelerate
  • The U.S. economy added 172,000 jobs in May
  • The ISM Services Index registered 54.5% in May
  • Manufactured durable goods orders rose 9.1% year-over-year in April

Top Three Market Headlines

May Jobs Report Exceeds Expectations: The U.S. economy added 172,000 jobs in May, according to the U.S. Department of Labor, exceeding economists' consensus estimate of 85,000 gains. The number of new jobs created over the prior two months was also revised upward by 93,000, putting the monthly average over the trailing three months at 188,000, the highest level in more than two years. Sectors seeing the most job additions in May included leisure and hospitality, local government, and healthcare. Meanwhile, the unemployment rate held steady at 4.3% in May, and has remained in a fairly tight range of 4.3% to 4.5% since July of 2025.

Business Activity Expansion Continues in May: The Institute for Supply Management (ISM) reported last week that its ISM Services Index, based on surveys of business executives, registered 54.5% for the month of May, a slight uptick from 53.6% in April. This was the 23rd straight month the reading exceeded the 50% threshold that distinguishes expansion of business activity from contraction. Meanwhile, the rebound in manufacturing sector activity continued in May, with the ISM Manufacturing Index clocking 54.0%, up from 52.7% in April and its fifth straight 50%+ reading. This uptrend continued despite comments from businesses that highlighted inflation and emerging supply constraints.

Durable Goods Orders Accelerate: The U.S. Census Bureau reported last week that new orders for manufactured durable goods outside of the transportation sector (where monthly orders can be volatile) rose 1.1% in April from the prior month and 9.1% on a year-over-year basis. This was the fifth consecutive month that the rate of annual growth exceeded 5% and was the strongest pace in nearly four years. Gains were led by fabricated metal products and primary metals. Notably, the strong growth came despite a marginal decline in orders for computers and electronic products after a strong run in those categories in prior months.

As of June 5, 2026 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World -2.18% 13.34% 9.71% 26.35%
S&P 500 -2.55% 13.35% 8.43% 25.85%
Russell 2000 -2.91% 13.71% 14.71% 36.83%
MSCI EAFE -1.39% 9.21% 7.85% 19.84%
MSCI Emerging Markets -1.94% 23.38% 23.18% 47.99%
FTSE NAREIT Equity 0.87% 9.96% 15.24% 18.64%
Bloomberg Commodity -1.77% -1.28% 22.82% 34.11%
Bloomberg U.S. Aggregate -0.54% -0.12% -0.17% 4.43%

US Census Bureau 6/3//2026, Institute for Supply Management 6/1/2026 & 6/3/202, US Dep't of Labor 6/5/2026. Data from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory services are offered by Gallagher Fiduciary Advisors, LLC ("GFA"), an SEC registered investment advisor that provides retirement, investment advisory, discretionary and independent fiduciary services. Registration as an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of Arthur J. Gallagher & Co. or its affiliates or to independent contractors; such payments do not change our fee. Neither Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice. GFA does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your GFA consultant before acting upon any information or recommendation contained herein to discuss the ability of the information/recommendation for your specific situation.