Market Beats | US Adds 139,000 Jobs in May; Man Group Orders London Quants Back to Office Five Days a Week; Apollo Eyes $100 Billion Bet on Germany; JPMorgan Lifts S&P 500 Target to 6,000; Trump-Musk Feud Alarms Allies as GOP and Silicon Valley Push for Reconciliation; Microsoft Hits Record High as AI Momentum Pushes Valuation to $3.48 Trillion

—— US Adds 139,000 Jobs in May; Man Group Orders London Quants Back to Office Five Days a Week; Apollo Eyes $100 Billion Bet on Germany; JPMorgan Lifts S&P 500 Target to 6,000; Trump-Musk Feud Alarms Allies as GOP and Silicon Valley Push for Reconciliation; Microsoft Hits Record High as AI Momentum Pushes Valuation to $3.48 Trillion

1. US Adds 139,000 Jobs in May

The US economy added 139,000 jobs in May, exceeding economists’ forecasts but reinforcing signs of a cooling labor market. The Bureau of Labor Statistics reported Friday that while May’s total was above the 126,000 predicted in a Bloomberg survey, it fell short of April’s downwardly revised 147,000.

The unemployment rate held steady at 4.2%.

Revisions to March and April brought the average monthly job gain for 2025 so far down to 124,000, compared to an average of 168,000 in 2024.

“The headline beat isn’t nearly as impressive as it appears at first glance,” said Thomas Simons, economist at Jefferies, citing the revised figures. “Job growth has clearly shifted into a lower trajectory.”

Marc Giannoni, chief US economist at Barclays, echoed that sentiment, predicting “more slowing over the course of the year.”

The weaker data poses a challenge for President Donald Trump, who is already facing voter dissatisfaction over the economy. On Tuesday, following disappointing private-sector hiring numbers, Trump lashed out at Federal Reserve Chair Jay Powell and called for interest rate cuts.

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2. Man Group Orders London Quants Back to Office Five Days a Week

Man Group, the world’s largest listed hedge fund manager, has mandated its London-based quant team to return to the office five days a week for a three-month period following a spell of poor performance.

Man AHL, the firm’s flagship systematic investing arm, issued the directive to about 150 staff in London — representing just under 10% of the firm’s 1,700 global employees — requiring full in-office attendance from May through July.

“Man AHL has asked its staff in London to work in the office five days a week for a three-month period to support an ‘all hands on deck’ cross-team research project,” the firm said.

“While these cross-team initiatives are infrequent, experience has shown that a period of highly focused, in-person collaboration allows significant research progress to be made in a relatively short amount of time,” it added. Man Group clarified that its broader agile working policy remains unchanged.

The move marks a shift for the $172.6 billion asset manager, which has historically promoted a flexible work culture as a competitive advantage.

“You cannot imagine how badly this has gone down with quants,” said one person familiar with the situation. “The mood is bad.” A second source noted that while attendance varies by role, employees have on average been in the office three days a week.

Man Group’s decision comes amid steep losses at computer-driven hedge funds like AHL this year.

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3. Apollo Eyes $100 Billion Bet on Germany

At Berlin’s marquee private equity gathering — the SuperReturn International conference — private capital executives convened in sauna-style wooden huts to discuss where the next big opportunities lie.

Apollo Global Management President Jim Zelter believes he has the answer. Speaking with Bloomberg News, Zelter said the firm could deploy up to $100 billion in Germany over the next decade, aiming to help fund Europe’s economic “renaissance.” Germany’s Economy Minister Katherina Reiche later attended a dinner hosted by Apollo, where she made the case for private capital investment, according to people familiar with the event. A spokesperson confirmed her attendance but declined to share further details.

With mergers and acquisitions slowing amid ongoing tariff policy uncertainty, the mood at the conference reflected a growing shift toward Europe. Executives from BC Partners, Permira, and Brookfield Asset Management noted that investor sentiment is warming to the region’s potential.

While Europe is the geographic darling of the moment, asset-backed finance has emerged as the favored investment strategy. Major firms such as KKR, Blackstone, and Carlyle have already made significant moves into the space, signaling that the next wave of private capital deployment may hinge on real assets and structured credit.

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4. JPMorgan Lifts S&P 500 Target to 6,000

JPMorgan Chase & Co. has joined a growing list of Wall Street firms reversing course on US equity forecasts, lifting its year-end target for the S&P 500 Index amid a resilient stock rally that has defied President Donald Trump’s erratic trade policy shifts.

Dubravko Lakos-Bujas, the bank’s top equity strategist, now sees the index finishing 2025 at 6,000 — up from his prior April projection of 5,200 made during peak tariff turmoil. Though the new target represents less than a 1% upside from Thursday’s close, it underscores a major shift in tone.

The upward revision follows similar target hikes from Goldman Sachs, Deutsche Bank, and Barclays, all of whom cite easing volatility and surprising market strength.

“Absent major policy surprises, the path of least resistance is to new highs,” Lakos-Bujas wrote in a note to clients Thursday evening. He pointed to continued support from AI-driven optimism, increased activity from systematic strategies as volatility wanes, and sustained dip-buying by active managers.

Markets have largely rebounded from April’s sharp selloff, when the S&P 500 dropped 12% in just five sessions following Trump’s sudden tariff barrage.

His decision to pause the levies for 90 days on April 9 marked a turning point, though subsequent tariff tweaks have kept markets guessing. Still, investors are now appearing to look past the policy confusion.

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5. Trump-Musk Feud Alarms Allies as GOP and Silicon Valley Push for Reconciliation

Allies of President Donald Trump and Elon Musk are urging the pair to reconcile after their very public fallout this week, warning that the rift could damage both political and commercial interests.

The dispute, which centers on Trump’s flagship tax bill, has unnerved Republican lawmakers and Silicon Valley backers alike, as it threatens to derail key elements of the administration’s legislative plans and fracture a carefully cultivated alliance between tech and Washington.

“It is unfortunate… I hope they will come back together,” said Texas Senator Ted Cruz, who was present in the Oval Office when Trump criticized Musk. “A lot of conservatives are feeling like this is not good, let’s hug and make up.”

Musk, who spent Thursday firing sharp public criticisms at Trump, appeared open to reconciliation, responding positively to billionaire investor Bill Ackman’s social media plea for peace “for the benefit of our great country.”

Trump struck a dismissive tone, saying on CNN, “I’m not even thinking about Elon… The poor guy’s got a problem. I won’t be speaking to him for a while, I guess, but I wish him well.” He spent the rest of the morning promoting his economic record and urging the Fed to cut rates following soft jobs data.

“Elon isn’t taking calls from anyone,” said a Silicon Valley financier and major GOP donor. “Not from people who have billions invested in his companies… The Valley is losing their shit.”

Any chance of a thaw was further complicated Friday by reports that Trump plans to sell or give away the Tesla he purchased in March to show support for Musk. Rumors of a private phone call between the two were denied by the White House.

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6. Microsoft Hits Record High as AI Momentum Pushes Valuation to $3.48 Trillion

Microsoft Corp. shares closed at an all-time high on Thursday, breaking a record that had stood since July as investors continue to view the software giant as one of the biggest beneficiaries of the AI boom.

Shares rose 0.8% to $467.68, surpassing the previous peak. The stock has rallied more than 30% from its April low, adding over $800 billion in market capitalization. With a valuation of about $3.48 trillion, Microsoft is once again the most valuable company in the world, edging out Nvidia Corp., which now stands at $3.42 trillion.

Its latest earnings report reinforced the bullish case that Microsoft is not only a leader in artificial intelligence but also one of the few companies already generating significant returns from its AI investments. This has helped calm earlier investor concerns about the payoff from the billions it has poured into the technology.

Year to date, Microsoft is up 11%, outperforming the Nasdaq 100 Index.

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7. Nvidia posts 69% revenue surge

Nvidia reported a 69% year-on-year jump in revenue to $44.1 billion for the quarter ending April 27, surpassing Wall Street’s forecast of $43.3 billion, even as it absorbs a major revenue hit from US export restrictions targeting China.

The chipmaker, central to the global AI infrastructure boom, expects revenue of about $45 billion for the current quarter, plus or minus 2%. That range puts its guidance slightly below the Bloomberg consensus estimate of $45.5 billion. Nvidia shares rose 5% in early Thursday trading.

The company is navigating the fallout from President Donald Trump’s renewed trade tensions with China, including export controls introduced in April that barred Nvidia from selling its AI chips specifically tailored for the Chinese market. Nvidia said those curbs led to a $4.5 billion charge last quarter and an additional $2.5 billion in missed sales. The company also expects to lose roughly $8 billion in Chinese revenue this quarter as a result.

CEO Jensen Huang said demand for Nvidia products remains “incredibly strong,” but he reiterated criticism of the US government’s export control measures on a call with analysts.

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