S&P 500 Index ($ SPX) (SPY) turned off 0.72%on Tuesday, Dow Jones Industrial Index ($ Dowi) (Dia) -0.64%closed down, and NASDAQ 100 Index ($ IUXX) (QQQ) +1.58%turned off. The June e-Mini S&P Fuxures (ESM25) is +0.64%, and June e-My Mine Nasdaq Futures (NQM25) +1.48%.
The stock index was recovered from the initial deficit on Tuesday and was added to the Monday sharp rally, with S&P 500 posted 2–1/4 months height and Nasdaq 100 at a height of 2–1/2 months. After Tuesday’s US APR Consumer Price Report, the shares were promoted by reducing inflation pressure. The stock also got the support of the carriageover from Monday when China and the United States agreed to cut tariffs and increase their trade war.
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In addition, a rally in chip makers supported the overall market on Tuesday that NVidia and Advanced Micro devices would supply a semiconductor to Saudi Arabia Artificial Intelligence Company Humen for a data center project. On Tuesday, the Department of Commerce said that it is restarting the AI Prasar Rules launched by President Biden, and the Trump administration plans to overhala the rules on the export of a semiconductor used in artificial intelligence that may be transferred towards interacting individual deals with countries.
US APR CPI increased +2.3% y/y/y, +2.4% y/y, slightly weaker than expectations and the shortest year-by-year growth in 4 years. Apr CPI ex-Food and Enrery Roved +2.8% Y/Y, Unchanged from March and correct on expectations.
The US-China trade stress reduced speculation that the business will push the US economy into recession. On Tuesday, JP Morgan Chase increased its US 2025 GDP forecast by +0.2%to +0.6%, stating that the trade between China and the US reduces the risk of trussal recession by 50%.
Weakness in health insurance stocks was weighed on Dow Jones Industrial on Tuesday, with the United Health Group, after over -17% drowning, he stepped down for personal reasons after CEO Witti to lead health insurance stocks, and the company suspended its 2025 perspective as expected to be more expected from medical expenses.
Treasury Secretary Besant Tuesday was a slowdown for negative business comments from Tuesday when he said that the European Union suffers from a “collective action problem” that is obstructing business talks. He said that the trade talks between the US and Europe may “slow down.”
This week, market tariffs will focus on the possibilities for news and additional business deals. On Thursday, the Apr is expected to be at +0.1% m/m, and APR retail sales are expected to be pre-autos +0.3% m/m. In addition, on Thursday, the Apr PPI is expected to be at the last demand +0.2% m/m and +2.5% y/y, Apr PPI with pre-food and energy +0.3% m/m and +3.1% y/y. Finally, on Thursday, APR manufacturing production is expected to fall by -0.4% m/m. On Friday, APR Housing is expected to start with +3.1% meter/m to 1.365 million, while the APR building permit is expected to be below -1.2% m/m to below 1.450 million. In addition, on Friday, the Michigan US Consumer Sentment Index is expected to increase +1.1 points at the University of Early May.
After the June 17-18 FOMC meeting, the market is giving exemption to 8% possibility for cuts in 25 BP rate.
Q1 Income reporting season is decreasing. So far, more than 75% of companies in S&P 500 have reported quarterly results, and 77% have defeated estimates, most since Q2 of 2024. The increase in income in Q1 is running at +13.1%, while just +6.6% is expected before the start of the season. Full year 2025 corporate profits for S&P 500 are seen growing +9.4% below the forecast of +12.5% in early January.
Foreign stock markets settled at a high level on Tuesday. Euro Stoxx 50 off +0.44%. China’s Shanghai Composite climbed a height of 1-1/2 months and +0.17%was closed. Nikkei Stock 225 of Japan reached 2–1/2 months high and closed +1.43%.
Interest rates
June 10-year-old T-notes (Znm25) closed-6 ticks closed on Tuesday. The yield of 10-year T-Note +2.8 BP increased to 4.499%. The June T-notes left an early advance on Tuesday and fell to a 1-month low, and a 10-year T-Note yield climbed to 1 month high 4.503%. The weakness in the bonds of the European government was weighed on T-Note prices on Tuesday. Apart from this, Tuesday’s rally in S&P 500 is demanded for government debt of 2-1/4 months high and 4 months. On Tuesday, T-Nots initially shifted higher on some fed-friendly inflation news after the US APR CPI report increased.
On Tuesday, the yield of European government bonds increased. The 10 -year -old German bund yield increased by 1 month high to 2.680% and ended +3.2 bp at that high. The 10-year-old UK gilt yield increased by 4-week up to 4.675% and increased to 4.670% from +2.8 bp.
The German May ZEW survey expectations of economic growth may increase +39.2 to 25.2, which is stronger than expectations of 11.3.
In the June 5 policy meeting, Swaps are offering 88% discounts at 88% for cutting -25 BP rate cut by ECB.
US Stock Movers
Chip shares held a rally for a second day on Tuesday to lift the overall market. NVIDIA (NVDA) and Micron Technology (MU) +closed over 5%, and advanced micro devices (AMD), broadcom (AVGO), and Kla Corp (Klac) +4%shut down. In addition, LAM Research (LRCX) and Applied Materials (AMAT) +closed more than 3%. In addition, NXP semiconductor NV (NXPI), Microchip Technology (MCHP), and Semiconductor (ON) +are closed more than 2%
The S&P Dow Jones Indices said that the company closed Coinbase Global (Coin) +23% after joining the S&P 500 index before the trading started on May 19.
Remond James recommended the outperform’s recommendation and the Super Micro Computer (SMCI) +5% off after starting coverage on the stock with a price target of $ 41.
Palaantir Technologies (Pltr) CTBC Securities Investment Service closed more than +8% after starting coverage on stock with a purchase recommendation on the stock and a price target of $ 142.30.
Holding (Onon) CHF726.6 million ($ 862.8 million) was more than +11% after reporting the Q1 net sales, which is stronger than consensus of CHF684.2 million ($ 812.4 million).
The XP Inc. (XP) +shut down over 3% after Morgan Stanley upgraded the stock for overweight than the same weight with a price target of $ 24.
Caterpillar (CAT) closed more than +2% after upgrading the stock to perform better than neutral with a price target of $ 395.
The United Health Group (UNH) shut down over -17% to lead health insurance shares, as CEO Viti immediately took effective steps for personal reasons, and the company suspended its 2025 approach as medical expenses are expected to exceed the anticipation. In addition, Elevance Health (ELV) and Humana (HUM) closed more than more than 9%, and CVS Health (CVS) and Centen (CNC) -6%closed. In addition, Molina Healthcare (MOH) closed over more than 5%, and CIGNA Group (CI) -4%closed.
There was pressure on protective food and beverage stocks on Tuesday due to strength in broad market. Mondelez International (MDLZ), Campale’s company (CPB), Congra Brands (CAG), McCormick & CO (MKC), and Hershey (HSY) -1 -2%shut down. In addition, Craft Hanz (KHC), PepsiCo (PEP), Monster Beverages (MNST), Hormal Foods (HRL), and General Mills (GIS) closed more than -1%.
Rapid 7 Inc. (RPD) closed more than -8% after downgrating the stock to underpar the neutral with a price target of $ 21 by DA Davidson.
The Simon Property Group (SPG) Full -Year FFO/Shares closed over -6% after the forecast of $ 12.40 to $ 12.65, the mid -6% below $ 12.56 below.
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Cisco Systems Inc. (CSCO), DXC Technology Co (DXC), Dynatrace Inc (DT), Milrose Properties Inc (MRP), New Fortress Energy Inc (NFE), Sterris Plc (Ste).
On the date of publication, Rich Escpland did not have the positions mentioned in any securities mentioned in this article (either direct or indirectly). All information and data in this article is only for informative purposes. For more information, please see the Barkart Disclosure Policy here.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
