The stock market closed at record highs following positive news from a US-China phone call between Trump and Xi, with major indexes like the Dow, S&P 500, and Nasdaq gaining, while some stocks like Cathie Wood's AI holdings and Scholastic faced declines. The market was influenced by a trade deal outlook, interest rate cuts, and earnings reports, with notable movements in tech, gold, and transportation stocks.
Wall Street stocks rebounded as the benchmark U.S. Treasury yield eased below 5%, leading to a shift in investor focus towards upcoming high-profile earnings reports and economic data. The three major U.S. stock indexes reversed earlier losses, with interest rate-sensitive momentum stocks benefiting from the decline in yields. This week will see a flurry of earnings reports from companies in the S&P 500, including tech giants like Microsoft and Alphabet, as well as heavy-hitting industrials such as General Motors and Boeing. Analysts are hoping for positive surprises from these companies. Additionally, market participants are keeping an eye on geopolitical turmoil, particularly the Israel-Hamas conflict.
US stock indexes rebounded on Tuesday as upbeat economic data eased concerns about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. The blue-chip Dow ended a six-day slump, and the PHLX Housing index hit an all-time high. The tech-heavy Nasdaq is on track to notch its best first-half performance in 40 years with a near 29% gain. Traders are pricing in a 79.4% chance the Fed will raise interest rates by 25 bps to 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool.
U.S. stocks closed higher on Friday, marking the end of a tumultuous week as Federal Reserve officials calmed investor fears over a potential liquidity crisis in the banking sector. While all three major U.S. stock indexes started the session sharply lower on the heels of a sell-off among European banks, those losses reversed by closing bell, repeating the intraday roller coaster ride of recent sessions. At the conclusion of an up-and-down week, marked by a Fed interest rate hike and mounting worries over the health of the banking system, all three indexes notched weekly gains.
