Market Highlights

A solid sale of long-term Treasuries reduced fears that spiraling deficits are causing investors to shun the bonds, with the market also gaining as soft inflation fueled bets the Federal Reserve will cut rates should the economy decelerate. The dollar hit a three-year low. Stocks rose. US 30-year yields approached the 4.8% mark after the $22 billion auction. The S&P 500 closed at the highest since Feb. 20, ending at a striking distance of its all-time high. Oracle Corp. climbed to a record on a strong sales outlook. Geopolitical worries briefly weighed on equities as ABC News reported Israel is considering military action against Iran. Oil pared most of its losses. Crude oil jumped the most in more than three years, stocks slid and haven assets including government bonds and gold rose after Israel attacked Iran’s nuclear program sites in a major escalation of tensions in the Middle East.

After a period of euphoria that saw the S&P 500 inching close to its all-time highs, stock markets hit the brakes, weighed down by the big tech sector. Early gains had been fueled by surprisingly benign inflation data, which stoked hopes for Federal Reserve rate cuts and led to a drop in bond yields. The three-day advance in equities was halted, with Apple Inc. notably down about 2% and Tesla Inc. little changed after a nearly 3% surge. However, after hours, Oracle Corp. jumped following revenue that beat estimates. Treasuries also climbed after a solid $39 billion sale of 10-year debt. This advance was led by shorter maturities, with two-year yields dropping below 4%. The dollar, meanwhile, hit its lowest level since 2023. The mood soured later in the session. Equity-index futures fell along with the dollar after President Donald Trump announced he would set unilateral tariff rates within two weeks, reigniting trade tensions. In this context, haven assets such as Treasuries and gold saw their value rise.

Wall Street investors closely monitoring trade discussions between the US and China drove stocks higher as Commerce Secretary Howard Lutnick said negotiations went really, really well. Treasuries and the dollar saw small moves ahead of a key inflation report. The S&P 500 finishedless than 2% away from its record. Tesla Inc. led gains in megacaps. JM Smucker Co. sank the most in nearly four decades after saying tariffs increasing costs in its coffee business will hurt profit. Bonds barely budged after a $58 billion sale of three-year notes. That’s the firstin a trio of offerings that will culminate in Thursday’s sale of 30-year debt.

Wall Street traders glued to their screens amid commercial talks between the US and China drove stocks mildly higher, with officials hinting at progress in negotiations. Bonds rebounded after Friday’s selloff as inflation expectations eased. The dollar fell. The S&P 500 eked out gains, remaining nearly 2% away from its February peak. Tesla Inc. jumped about 4.5% as President Donald Trump reiterated his desire to end his spat with Elon Musk, saying he would retain Starlink internet service at the White House and that he wished his billionaire backer “very well.” Apple Inc. slipped over 1% as it hasn’t featured any noticeable artificial- intelligence advancements during a conference.

Stocks fell alongside Treasuries as online squabbling between President Donald Trump and Elon Musk knocked down Tesla Inc., weighing heavily on the megacap tech space. While equities closed away from session lows, the Nasdaq 100 dropped almost 1%. Tesla sank 14% as Trump proposed ending Musk’s government contracts and subsidies after his onetime adviser attacked the Republican tax-policy bill. Earlier gains in equities were driven by hopes tensions between the US and China would ease as Trump and Xi Jinping agreed to further trade talks. On the eve of the all-important jobs data, an unexpected jump in unemployment claims added to speculation the Federal Reserve will cut rates at least twice this year. Economists see payrolls rising by 125,000 after job growth in March and April exceeded projections. That would leave the average over the past three months tracking a still-solid 162,000. The unemployment rate is seen holding at 4.2%.

Treasuries rallied after weaker-than-expected economic data reinforced speculation that the Federal Reserve will cut interest rates at least twice this year to prevent an economic recession. A contraction in US service providers and a deceleration in hiring drove bond yields down across the curve. Swap traders are pricing in two Fed reductions in October and December. The possibility of a move in September increased to over 90%. The dollar slipped. The S&P 500 was little changed, with defensive industries like health care and communications outperforming the market.

Wall Street traders drove stocks higher as data showed the US labor market is holding up despite concerns about risks stemming from President Donald Trump’s tariff war. Bonds fell. The dollar rose. Just days ahead of the US payrolls report, an unexpected increase in job openings buoyed sentiment. Tech giants led the S&P 500’s bounce, with Nvidia Corp. up almost 3%. Energy shares joined a rally in oil. Earlier equity losses were driven by a cut in OECD’s growth forecasts as the institution said combative trade policies have tipped the world economy into a downturn.

A rebound in big tech drove stocks higher after a slide driven by weak manufacturing, trade and geopolitical risks. Bonds fell as the dollar hit its lowest since 2023. Coming off the S&P 500’s best May in 35 years, the benchmark edged up at the start of what’s historically one of its quietest months for gains. Nvidia Corp. led an over 1.5% rally in a measure of chipmakers. US steel and aluminum shares surged on Donald Trump’s pledge to double levies on the metals. Longer-dated Treasuries underperformed, with the spread between five-and 30-year yields near a level it last closed above in 2021. Oil climbed.

Volatility gripped stocks in the last stretch of the month, with the market bouncing from its lows as Donald Trump said he expected to speak to Xi Jinping after accusing China of a trade-deal breach. Following a slide that earlier reached 1.2%, the S&P 500 briefly erased losses to close little changed. The gauge notched its best May since 1990. Shorter-term Treasuries outperformed, with the market set for its firstmonthly drop this year. The dollar barely budged, while posting a fifth straight month of declines - the longest slide since 2020.

Wall Street traders cheering solid results from Nvidia Corp. had to face the harsh reality of slowing economic data and legal uncertainties around Donald Trump’s trade war. The president told Federal Reserve Chair Jerome Powell he’s making a mistake for not cutting rates. The S&P 500 pared most of an advance that earlier approached 1%. A federal appeals court offered Trump a temporary reprieve from a ruling threatening to throw out the bulk of his tariff agenda. Treasuries rose on bets the Fed will slash rates twice this year and after a solid $44 billion sale of seven-year notes. The dollar fell. Asian shares fell on concern President Donald Trump’s tariffs are here to stay after his administration reiterated its resolve to keep the levies amid a legal tussle.