Why is it dropping

The SPDR S&P 500 ETF Trust (SPY) experienced a decrease of 0.56% on June 5. The decline of the SPY can be attributed to the following factors:

1. Jobless Claims Increase: The S&P 500 fell due to concerns over rising jobless claims, which reached an eight-month high. This increase in jobless claims indicated a weakening labor market, which could lead to lower economic growth and negatively impact corporate earnings. As a result, investors may sell off stocks, leading to a decline in the S&P 500.
2. Trade Tensions between U.S. and China: Although there was optimism surrounding potential easing of trade tensions between the U.S. and China, which initially sparked hope for a resolution, this optimism was tempered by news of a phone conversation between Presidents Trump and Xi Jinping. Such mixed data can create uncertainty in the market, leading to a decline in stock prices.

In conclusion, the drop in the SPY can be attributed to a combination of jobless claims increase and trade tensions between U.S. and China.