In a remarkable resurgence that captured investors’ attention worldwide, United States equity markets demonstrated a vibrant performance, culminating in notable gains on Friday. This resurgence was particularly driven by a heartening employment report, which played a pivotal role in assuaging concerns surrounding the economic landscape. Notably, the NASDAQ Composite Index surged past the 6,000 threshold, marking its highest point since February 21, a movement significantly propelled by advancements within the technology sector.
This rally wasn’t isolated to the NASDAQ alone. Other principal indices, including the S&P 500 and the Dow Jones Industrial Average, also celebrated substantial upswings over the week. The S&P 500 leapt by 1.5%, the Dow Jones by 1.2%, and the technology-centric NASDAQ Composite outstripped both with a 2.2% gain. These increments underline a collective optimism woven through the fabric of the market, hinting at underlying robustness within the economy.
However, amidst this financial exuberance, future prospects remain tinged with the specter of volatility. Investors stand on the precipice of a week fraught with potential challenges, eagerly deciphering the economic landscape, inflation trajectories, interest rate directions, and corporate earnings. The backdrop to this financial theatre is the ongoing trade skirmish under the stewardship of then-President Donald Trump, adding layers of complexity to the investment calculus.
The impending week had been earmarked for pivotal discussions as Treasury Secretary Scott Bessent, alongside senior Trump administration officials, was scheduled for a rendezvous with Chinese counterparts in London. This meeting came on the heels of a dialogue between Trump and President Xi Jinping, thereby highlighting the international dimension of the economic discourse.
The economic diary heralded the release of the U.S. consumer price inflation report for May as a potentially seismic event. Positioned on Wednesday, this data promised to stir the markets if it deviated from anticipations. Accompanying this would be the unveiling of producer price figures, offering a comprehensive vista on the inflationary horizon.
The Federal Reserve’s speakers’ circuit entered a lull as the institution retreated into its pre-FOMC blackout period, gearing up for the June 17-18 policy assembly. This silence added an aura of anticipation, directing attention towards corporate earnings revelations.
Even as the earnings season approached its twilight, the spotlight remained fixated on a select cohort of enterprises poised to disclose their financial health. Among them stood technological behemoths Oracle and Adobe, the cultural phenomenon GameStop, and the online pet retailer Chewy. These disclosures promised to offer valuable insights into sectoral health and broader economic indicators.
In this complex mosaic of market movements, Datadog emerged as a beacon for potential investors. Poised at the cusp of its flagship ‘Dash 2025’ event, the entity promised a cascade of product unveilings and strategic updates. This two-day symposium had historically served as a kinetic force propelling the stock upwards, evidenced by last year’s substantial rally during the same period. Hence, the anticipation of similar dynamism was palpable this year.
Datadog’s leadership, including Chief Executive Officer Olivier Pomel and Chief Product Officer Yanbing Li, stood ready to unfurl AI-driven solutions that promised to redefine observability and cybersecurity landscapes. The ensemble of new propositions was not confined to product unveilings but extended towards strategic alliances potentially broadening Datadog’s market footprint.
On the flip side, Apple navigated through a thicket of challenges as it geared up for its Worldwide Developers Conference (WWDC) for 2025. Despite the global anticipation that usually accompanies this event, investor sentiments this year were tempered. Apple’s perceived tardiness in embracing AI innovations, juxtaposed against its competitors, spawned a veil of skepticism. The uncertain trajectory of its AI strategy, compounded by vulnerabilities in its China-centric supply chain and anxieties over tariffs, painted a less sanguine picture for the tech giant.
WWDC promised to be a showcase of Apple’s software ecosystem prowess, yet the shadow of its AI developmental pace loomed large. With Apple’s stock valuation deemed overstretched by InvestingPro’s AI-backed models, the event bore a critical significance. It represented not merely a platform for technological announcements but a crucible for Apple’s future market performance.
As we stride into another week of financial navigation, encapsulated by an intricate web of macroeconomic indicators, corporate disclosures, and geopolitical dialogues, the stakes remain high. Investors, armed with insights and analyses, stand on the threshold of decisions that promise to calibrate their portfolios against a backdrop of uncertainty and opportunity alike.
U.S. stocks closed sharply higher on Friday after a generally upbeat jobs report eased worries about the economy. The closed above 6,000 for the first time since February 21, fueled by gains in technology shares.
The benchmark index, along with the other two major indices, also posted notable gains for the week. The S&P 500 jumped 1.5%, the climbed 1.2%, while the tech-heavy advanced 2.2%.
Source: Investing.com
More volatility could be in store this week as investors continue to assess the outlook for the economy, inflation, interest rates and corporate earnings amid President Donald Trump’s trade war.
Treasury Secretary Scott Bessent and two other top Trump officials will meet Monday with Chinese counterparts in London, Trump said Friday. That follows Trump’s call with President Xi Jinping on Thursday.
On the economic calendar, most important will be Wednesday’s U.S. consumer price inflation report for May, which could spark further turmoil if it comes in higher than expectations. The CPI data will be accompanied by the release of the latest figures on producer prices, which will help fill out the inflation picture.
Meanwhile, there will be no Fed speakers on the agenda as the central bank goes into its pre-FOMC blackout mode ahead of the June 17-18 policy meeting.
Source: Investing.com
And while the earnings season is almost over, a few notable companies will report in the coming week, including tech giants Oracle (NYSE:) and Adobe (NASDAQ:), meme stock GameStop (NYSE:), and pet e-commerce company Chewy (NYSE:).
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is justfor the week ahead, Monday, June 9 – Friday, June 13.
Stock to Buy: Datadog
Datadog (NASDAQ:) stands out as a top buy this week, with its flagship ’Dash 2025’ event set to be a major catalyst for the stock. The two-day conference, starting Monday, is notorious for product reveals and strategic updates.
DDOG shares have a history of rallying during the company’s annual Dash event. Last year, the stock surged 10.3% during the week of the conference, driven by positive announcements and analyst upgrades. This established pattern suggests potential for similar price action this year.
Shares ended Friday’s session at $122.16, valuing the security-software maker at $42.2 billion.
Source: Investing.com
Chief Executive Officer Olivier Pomel, Chief Product Officer Yanbing Li, and other leadership team members are expected to introduce new AI-driven solutions for observability and cybersecurity, enhancing Datadog’s ability to detect and resolve issues in real time.
The event is also likely to showcase advancements in cloud monitoring, particularly for hybrid and multi-cloud environments, as businesses increasingly rely on complex cloud infrastructures.
New strategic partnerships that can extend the cloud security company’s reach and improve platform capabilities might be revealed as well.
Now in its eighth year, Datadog shares have demonstrated strong performance during the week of the Dash event. The conference often attracts upgrades from Wall Street analysts, as new product launches and features demonstrate the company’s innovation and growth potential.
Source: InvestingPro
As InvestingPro points out, Datadog has a ‘GOOD’ Financial Health Score of 2.9/5.0, supported by its upbeat profitability outlook and strong sales growth prospects thanks to the strong adoption of its cloud monitoring solutions.
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Stock to Sell: Apple
Conversely, Apple (NASDAQ:) is gearing up for its annual Worldwide Developers Conference (WWDC) 2025 starting Monday. The five-day event will kick off with a keynote address by CEO Tim Cook that is set to take place at 1:00PM ET/10:00AM PT.
With Apple’s AI strategy lagging behind competitors like Google (NASDAQ:) and Microsoft (NASDAQ:), the event may fail to inspire confidence among investors.
AAPL stock closed at $203.92 on Friday, earning the tech giant a market cap of $3.05 trillion. Shares are down nearly 18% year-to-date in 2025, underperforming the S&P 500, due to tariff threats impacting its China-heavy supply chain and disappointment over its slow AI rollout.
Source: Investing.com
While WWDC usually piques investor interest, this year’s outlook is more subdued. Although AI advancements are anticipated to be highlighted, Apple’s perceived slow pace in AI development has led to investor disappointment, leaving limited room for error.
WWDC will also showcase Apple’s software innovations across its ecosystem, including updates to iOS, iPadOS, macOS, watchOS, tvOS, and visionOS. However, hardware announcements, if any, are likely limited to a new Mac Pro with an M4 chip.
Source: InvestingPro
It should be noted that Apple’s stock is overvalued as per the AI-backed quantitative models in InvestingPro, which point to potential downside of 18.8% from Friday’s closing price.
Such a move would take shares closer to their ‘Fair Value’ price of $165.49.
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Disclosure: At the time of writing, I am long on the S&P 500, and the via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), and Invesco S&P 500 Equal Weight ETF (RSP).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
