The S&P 500 and Nasdaq rose more than 2%, with Tesla gaining nearly 7%. Nvidia closed over 3% higher ahead of its earnings report. Trump Media fell 10%, while Pinduoduo dropped nearly 14%. NIO and XPeng declined over 3%.
Japanese bonds staged a sharp rebound. Following the two-year U.S. Treasury auction, Treasury yields hit daily lows. The U.S. dollar index accelerated its rebound after consumer confidence data, while the yen, after hitting a four-week high, fell over 1%. Crude oil dipped nearly 2% intraday, and gold futures briefly dropped over 2%. Positive U.S.-EU trade talks boosted European and U.S. stocks, with Germany’s DAX hitting a record high. Tesla led gains among the “Magnificent Seven” tech giants. Pinduoduo’s Q1 revenue missed expectations, triggering a steep decline. News of Japan stabilizing its bond market lifted long-dated bond prices in Japan, Europe, and the U.S. Safe-haven demand waned, pushing gold lower for two consecutive days. U.S. stocks, bonds, and the dollar rallied. U.S. consumer confidence exceeded expectations, fueling the dollar’s rebound. Japanese bonds surged, while European and U.S. bonds also climbed. The two-year Treasury auction saw solid demand, further lifting bond prices. During European trading, Japan’s Finance Ministry considered adjusting its bond issuance plan, potentially reducing ultra-long-term bond sales. The 30-year Treasury yield fell below 5%. Later, former U.S. President Trump expressed optimism about accelerated EU trade talks. Most European indices, except France, closed higher, with Germany’s DAX up over 0.8% at a record close. U.S. May consumer confidence jumped to 98, the largest rise in four years, lifting the dollar and pressuring non-dollar currencies. The yen, earlier at a four-week high, fell over 1%. Reports of EU officials requesting U.S. investment plans from major companies further boosted U.S. stocks. The two-year Treasury auction’s yield was 3.955%, with a bid-to-cover ratio of 2.57, driving yields to daily lows. Long-dated yields dropped at least 8 basis points, outperforming the broader bond market. U.S. stocks opened sharply higher Tuesday: the S&P and Nasdaq rose over 2%, Tesla surged nearly 7%, and Nvidia gained over 3% pre-earnings. Airline and semiconductor ETFs led sector gains. Chinese stocks extended losses for six days, with NIO and XPeng down over 3%. Pinduoduo’s Q1 revenue growth slowed, with net profit falling 47%, sending shares down nearly 14%. The S&P 500 closed up 118 points.The S&P 500 rose 72 points, or 2.05%, to close at 5,921.54. The Dow Jones Industrial Average gained 740.58 points, or 1.78%, to finish at 42,343.65. The Nasdaq Composite advanced 461.96 points, or 2.47%, to 19,199.16. The Nasdaq 100 Index climbed 499.34 points, or 2.39%, to 21,414.99. The Russell 2000 Index increased by 2.48%, closing at 2,090.40. The CBOE Volatility Index (VIX) fell 7.78% to 18.97.
Sector ETFs: The Global Airlines ETF rose 3.92%, the Semiconductor ETF gained 3.17%, and the Consumer Discretionary ETF added 2.95%. Technology, Regional Banking, Banking, and Global Tech ETFs all rose at least 2.22%, while the Utilities ETF underperformed with a 0.87% gain. Magnificent 7: The index tracking the seven major U.S. tech stocks rose 2.93% to 161.92. Tesla surged 6.94%, Nvidia gained 3.21%, Alphabet (Google) rose 2.63%, Apple and Amazon each added at least 2.5%, Meta Platforms climbed 2.43%, and Microsoft advanced 2.33%. Semiconductors: The Philadelphia Semiconductor Index rose 3.38% to 4,861.09. AMD gained 3.85%, and TSMC ADRs rose 2.97%. AI Stocks: Tempus AI rose 5.29%, and Applovin closed up 7.51%. Chinese Stocks: The Nasdaq Golden Dragon China Index fell 0.28% to 7,175.45. Pony.ai surged 20.2%, WeRide gained 18.1%, while XPeng fell about 3%, NIO dropped around 4%, and PDD declined 13.9%. Other Stocks: Berkshire Hathaway Class B shares rose 1.13%. The “Trump Tariff Losers” Index gained 3.45% to 97.44, with Wayfair up 13.37%, e.l.f. Beauty rising 9.28%, and Five Below advancing 8.23%. Trump Media & Technology Group (DJT) fell 10% as the company plans to follow Strategy’s approach of selling shares to buy cryptocurrencies. European Markets: The Eurozone blue-chip index rose nearly 0.4%, led by Infineon, ASML, and SAP, each gaining over 1%. Germany’s DAX hit a record high, rising over 0.8%.Pan-European Stocks: The European STOXX 600 index closed up 0.33% at 552.32 points. The Eurozone STOXX 50 index rose 0.37% to 5415.45 points.
National Indices: Germany’s DAX 30 index gained 0.83% to 24226.49 points, surpassing its previous record closing high of 24122.40 points set on May 21. France’s CAC 40 index dipped 0.02% to 7826.79 points. The UK’s FTSE 100 index returned from a long weekend with a 0.69% rise to 8778.05 points, while the FTSE 250 and FTSE 350 indices advanced 1.11% and 0.74%, respectively. Sectors and Stocks: Among Eurozone blue chips, Infineon, ASML Holding, SAP, Airbus, BASF, Siemens, Bayer, and Deutsche Post led gains, rising between 1.01% and 1.89%. U.S. Treasury Yields: Yields broadly declined, with long-term yields dropping at least 8 basis points. The 30-year German bond yield fell over 6 basis points. In New York late trading, the 10-year U.S. Treasury yield decreased 7.92 basis points to 4.4338%, remaining in a range of 4.5070%-4.4259%. The 20-year and 30-year yields dropped 8.60 and 9.04 basis points, respectively. European Bonds: At the close of European trading, Germany’s 10-year bond yield fell 2.8 basis points to 2.532%, fluctuating between 2.549%-2.513%. Yields for French, Italian, Spanish, and Greek 10-year bonds averaged a 3.2 basis point decline. U.S. Dollar: Strengthening U.S. Treasuries propelled the dollar index to rebound over 0.6% from its previous New York close. The yen depreciated more than 1% due to this dollar recovery. Bitcoin maintained wide fluctuations near $11,000 after Trump Media & Technology Group (DJT) announced plans to emulate Strategy’s stock sale for cryptocurrency purchases. Currency Markets: The ICE Dollar Index rose 0.65% to 99.48 points. The euro and pound fell 0.51% and 0.42% against the dollar, respectively, while the Swiss franc weakened 0.76%. Among commodity currencies, the Australian and New Zealand dollars declined 0.66% and 0.84%, and the Canadian dollar lost 0.56%. The yen dropped 1% against the dollar.05%, closing at 144.35 yen, with an intraday trading range of 142.12-144.45 yen. The euro rose 0.54% against the yen, while the British pound gained 0.63%.
Offshore RMB: In late New York trading, the offshore RMB was quoted at 7.1896 against the US dollar, down 128 basis points from Monday’s close, with an intraday range of 7.1712-7.1940. Cryptocurrencies: In late New York trading, CME Bitcoin futures (BTC) rose 0.11% from Monday’s close to $110,000. CME Ethereum futures (DCR) gained 4.58% to $2,682.50. US crude oil futures fell 1%, while New York natural gas rose over 1.9%. Crude oil: WTI July crude futures fell $0.64 (1.04%) from Friday (May 23) to close at $60.89 per barrel. Brent July crude futures dropped $0.65 (1.00%) to $64.09 per barrel. Natural gas: NYMEX June natural gas futures rose approximately 1.92% from Friday to close at $3.3980 per million British thermal units. New York gold futures fell about 1.9%, briefly dipping below $3,290, while New York copper futures also declined 1.9%. Gold: In late New York trading, spot gold fell 1.26% to $3,301.79 per ounce, with an intraday range of $3,350.02-$3,285.48. Prices continued to decline from 12:00 to 16:00 Beijing time before stabilizing at lower levels. COMEX gold futures dropped 1.87% to $3,302.70 per ounce, trading between $3,349.70 and $3,283.00. Silver: In late New York trading, spot silver fell 0.67% to $33.2656 per ounce. COMEX silver futures declined 0.67% to $33.385 per ounce. Copper: In late New York trading, COMEX copper futures fell 1.91% to $4.7440 per pound. Risk Warning and Disclaimer: Markets involve risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not account for individual users’ specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions herein align with their particular circumstances. Investments made based on this information are at the investor’s own risk.
