Closing Recap 

U.S. stocks finished broadly higher in a “no bad news is good news” session, extending recent gains as markets awaited fresh catalysts; small caps outperformed, gold eased, oil gained, while the dollar strengthened slightly and Treasury yields were little changed. 

Key Takeaways 

• Quiet Day, Stocks Edge Higher: Major indices posted modest to solid gains in a session lacking significant economic data or major trade headlines. 
• Sentiment Improving: Fear & Greed Index remained in “Greed” territory, though some underlying caution persists (sell-side ratio). 
• OECD Cuts Growth Forecasts: OECD lowered its global and U.S. growth forecasts through 2026, citing tariff impacts, uncertainty, and weak sentiment. 
• Gold Eases, Oil Gains: Gold prices pulled back slightly as the dollar firmed, while crude oil prices edged higher. 
• Dollar Firms Modestly, Yields Stable: The U.S. dollar recovered some ground, particularly against the Euro, while Treasury yields were relatively flat. 
• Focus on Upcoming Data/Fed: Markets look ahead to U.S. mortgage applications, ADP employment, and more Fed speakers tomorrow. 

Market Overview 

U.S. equity markets continued their upward trajectory today, albeit with less dramatic moves than seen in recent sessions. After a quiet overnight session where futures faded modestly, stocks hovered near the flatline at the open before gradually notching gains throughout the day. In the absence of significant market-moving economic data or fresh, aggressive tariff headlines, a “no bad news is good news” sentiment appeared to prevail. Investors seemed comfortable adding to positions, with small caps (Russell 2000) showing notable outperformance, a positive sign for market breadth. 

Index	Up/Down	% Change	Last
DJ Industrials	214.16	0.0051	42519
S&P 500	34.42	0.0058	5970
Nasdaq	156.34	0.0081	19398
Russell 2000	32.81	0.0158	2103

The Fear & Greed Index remained in “Greed” territory for a second day, suggesting improved risk appetite, although other sentiment indicators, like the sell-side upgrade/downgrade ratio for May (which hit a year-to-date low), indicate some lingering caution among analysts. Market observers noted interesting statistical points: the OECD cut its global and U.S. growth forecasts due to trade concerns, and the U.S. bond market is experiencing its longest drawdown on record. 

However, other analysts pointed to the S&P 500 sector correlations to the index being well above average, suggesting that as macro fears ease further, the rally could have more room to run. Data on the U.S. housing market highlighted a significant increase in the value of homes for sale, reaching a record in April. By the close, market breadth had expanded to favor advancers by about 2:1. Technology, Energy, and Materials were among the leading S&P sectors, while defensive areas like Consumer Staples and Real Estate lagged.

Economic Data

Yesterday’s economic data showed an unexpected rise in job openings and a further decline in factory orders:

• JOLTS Job Openings (Apr): Rose to 7.391 million, above the 7.100M consensus and March’s 7.2M reading. The job openings rate ticked up to 4.4%. The quit rate dipped to 2.0%. 
• Factory Orders (Apr): Fell -3.7% m/m (vs. -3.2% est., +4.3% prior). Excluding transportation, orders fell -0.5%. Nondefense capital goods orders ex-aircraft (core capex) were revised lower to -1.5%. 

Commodities, Currencies, and Treasuries 

Gold futures eased slightly after a strong run, with August futures settling down $20.10 (-0.59%) at $3,377.10 per ounce. The pullback was attributed to a strengthening U.S. dollar and perhaps some profit-taking as immediate safe-haven demand moderated slightly. However, ongoing trade tensions and geopolitical issues are expected to provide underlying support. Crude oil prices edged higher, with WTI gaining $0.89 (+1.42%) to settle at $63.41/bbl. Prices found support from broader equity market strength and perhaps some technical buying, though headlines about potential “peaceful” progress on the Iran nuclear deal provided some counter-pressure later in the session. The U.S. dollar index firmed, particularly against the Euro, while weakening slightly against the Yen. Treasury yields were little changed across the curve after yesterday’s decline, with the 10-year yield ending near 4.454%.

Asset	Up/Down	Unit / % Change	Last
WTI Crude	0.89	USD/bbl	63.41
Brent	1	USD/bbl	65.63
Gold	-20.1	USD/oz	3377.1
EUR/USD	-0.0073	USD	1.1369
USD/JPY	1.37	JPY	144.06
10-Year Note	-0.008	%	0.04454

Looking Ahead 

The market looks ahead to U.S. mortgage applications data and the ADP employment change report tomorrow morning for further clues on the economy’s health. Comments from various Federal Reserve speakers will also continue to be monitored. While trade headlines were relatively subdued today, the underlying situation remains a key focus for investors. The market will be watching to see if the recent positive momentum can be sustained or if consolidation takes hold after the strong run-up.