Adding to fiscal concerns, President Donald Trump, alongside Defense Secretary Pete Hegseth, announced a $175 billion initiative dubbed the "Golden Dome," a multi-layered missile defense project intended to shield the U.S. from foreign military threats, including hypersonic and ballistic missiles.

On the political front, the House of Representatives passed what Trump called the "One, Big, Beautiful Bill" — a sweeping tax and spending package. According to the Congressional Budget Office, the bill could increase the federal budget deficit by $3 trillion to $4 trillion over the next decade.

The move marks the sharpest escalation in transatlantic trade relations in years. In 2024, U.S. imports from the EU reached $687 billion, with a record goods trade deficit of $236 billion. In March 2025 alone, the U.S. imported $91.9 billion from the bloc, racking up a $47 billion monthly deficit, as firms accelerated shipments ahead of the tariffs.

On the economic front, May's Purchasing Managers' Index surveys delivered a mixed signal. Activity in both services and manufacturing sectors grew faster than expected, indicating underlying strength. However, the data also showed the sharpest rise in input prices in nearly three years, stoking inflationary fears.

Gold prices — as tracked by the SPDR Gold Trust (NYSE:GLD) — jumped more than 4% over the week, recovering all of last week’s losses and inching back toward record territory. Meanwhile, Bitcoin (CRYPTO: BTC) exploded past the $111,000 mark for the first time in history.