Weekly market wrap up

The Nasdaq stepped back from record highs this week as investors digested the largest IPO in market history. SpaceX's public debut generated plenty of excitement, but it also raised a practical question: where does the money come from? Part of the concern is that investors may trim existing technology holdings to make room for a company that arrived with a valuation measured in trillions of dollars. That can create short-term pressure on the very stocks that helped drive the Nasdaq to its recent highs. The prospect of eventual index inclusion only adds another layer of complexity. The reaction is a reminder that markets do not just price today's opportunities - they also make room for tomorrow’s.

US inflation returned to the spotlight this week, with consumer prices rising 4.2% annually in May, up from 3.8% in April and marking the highest inflation rate in around three years. Higher energy costs were a major driver, highlighting how quickly global events can flow through to everyday prices. Producer price data also pointed to renewed cost pressures further up the supply chain, suggesting businesses are facing a less comfortable pricing environment than earlier in the year. For markets, the figures reinforced a familiar lesson - inflation rarely moves in a straight line. After a prolonged period of moderation, the latest data showed how quickly energy markets and geopolitical tensions can alter the outlook. 

The FIFA World Cup is underway, once again turning football into a global event that extends well beyond the pitch. Major sporting events of this scale support spending across hospitality, travel, advertising and broadcasting, while giving global brands a rare opportunity to reach audiences almost everywhere at once. The tournament is a reminder that consumer behaviour is not shaped solely by interest rates, inflation and economic data. Events that capture global attention can influence spending patterns, tourism activity and corporate revenues in ways that are difficult to replicate. The economic impact is rarely large enough to alter broader growth trends, but it is another example of how major global events can ripple through the wider economy. 

The US labour market was back in focus this week, with non-farm payrolls rising by 172,000 in May, comfortably above market expectations. Job gains came through in leisure and hospitality, local government and healthcare, while financial activities went backwards, proving once again that labour markets enjoy making tidy narratives difficult. Revisions also added 93,000 jobs to March and April, meaning the recent hiring picture was stronger than first thought. For New Zealand, US labour data still matters through global interest rates, the US dollar and investor sentiment. The latest figures point to a labour market that remains resilient, but payrolls data has a habit of evolving over time.