Closing Recap

U.S. stocks continued their relentless climb, with the S&P 500 and Nasdaq notching another round of record highs in a quiet session, while oil prices fell sharply; Bitcoin also surged to a new all-time high, underscoring broad risk appetite. 

Key Takeaways 

• New Record Highs: The S&P 500 and Nasdaq Composite closed at new all-time highs, extending the powerful rally that began in April. 
• Quiet But Upward Grind: The market plodded steadily higher throughout the day with no major news catalysts, showcasing strong underlying momentum. 
• Dovish Fed Speak: San Francisco Fed President Mary Daly suggested the time to cut rates is “nearing” and sees two cuts as a likely outcome, supporting market sentiment. 
• Jobless Claims Improve: Weekly jobless claims came in better than expected, easing some concerns about the labor market. 
• Oil Prices Slump: Crude oil prices fell significantly, down over 2.6%, in a notable divergence from the risk-on mood in equities. 
• Bitcoin Surges to New Record: The cryptocurrency continued its powerful rally, topping $113,000 for the first time. 
• Sentiment Bullish: Investor sentiment readings from AAII and NAAIM showed increasing bullishness, though some professionals pulled back from peak exposure. 

Market Overview 

The relentless upward grind for U.S. equities continued today, with major indices pushing higher in a remarkably quiet session that saw both the S&P 500 and Nasdaq Composite set new all-time closing records. In a market that seems to have shrugged off all worries for the time being, investors continued to buy into the rally, seemingly unconcerned by the lack of fresh catalysts on the trade or geopolitical fronts. The S&P 500 has now seen only one meaningful pullback since early May, a testament to the powerful momentum that has taken hold since the tariff-induced sell-off in April. 

Index	Up/Down	% Change	Last
DJ Industrials	82.82	0.0019	44541
S&P 500	17.12	0.0027	6280
Nasdaq	19.33	0.0009	20630
Russell 2000	10.92	0.0048	2263

Yesterday’s strength was broad, with small caps (Russell 2000) outperforming their large-cap peers, and the Dow Transports index getting a lift from a strong quarterly earnings report from Delta Air Lines (DAL). This suggests a healthy broadening of the rally beyond just the mega-cap tech names that have done much of the heavy lifting. The positive mood was further supported by dovish commentary from San Francisco Fed President Mary Daly, who indicated that the time for interest rate cuts is “nearing” and that she views two cuts as a “likely outcome.” This helped offset the more cautious tone from the FOMC minutes yesterday. 

Economic data was also supportive, with weekly jobless claims falling more than expected, providing a reassuring signal about the labor market’s health. While sentiment indicators are showing increased bullishness, some contrarian signals are emerging, with professional manager exposure (NAAIM) pulling back slightly from recent highs.

Economic Data

The primary economic data point yesterday was weekly jobless claims, which showed an improvement in the labor market. 

• Weekly Jobless Claims: Fell to 227,000 from a revised 232,000 prior, coming in better than the 235,000 consensus. 
• The 4-week moving average also declined. Continuing claims, however, ticked higher to 1.965 million. 

Commodities, Currencies, and Treasuries 

Gold prices posted a modest gain, with August futures rising $4.70 (+0.14%) to settle at $3,325.70 per ounce, finding some stability after recent volatility. Crude oil prices, however, fell sharply, with WTI settling down $1.81 (-2.65%) at $66.57/bbl. The drop came despite the risk-on mood in equities, suggesting traders may be focused on specific supply/demand fundamentals or technical factors. Natural gas prices, in contrast, surged nearly 4%. 

Asset	Up/Down	Unit / % Change	Last
WTI Crude	-1.81	USD/bbl	66.57
Brent	-1.55	USD/bbl	68.64
Gold	4.7	USD/oz	3325.7
EUR/USD	-0.0028	USD	1.1691
USD/JPY	-0.11	JPY	146.19
10-Year Note	0.004	%	0.04346

Treasury yields were little changed across the curve after a relatively solid 30-year bond auction. The 10-year yield settled near 4.346%. The U.S. dollar was mixed, weakening against the Euro but strengthening slightly against the Yen. Bitcoin was a major standout, surging to a new all-time high above $113,000, showcasing strong momentum in the crypto space.

Looking Ahead 

The market heads into the weekend on a strong footing, with major indices at or near record highs. With the bulk of this week’s key economic data now released, attention will shift to the start of Q2 earnings season next week, with major banks set to report. Investors will be keenly watching corporate guidance for insights into how businesses are navigating the current economic and trade environment. While trade headlines have been quiet, any new developments remain a potential source of volatility.