Closing Recap 

U.S. stocks finished mixed after a day of consolidation, with the Nasdaq outperforming on strength in select mega-cap tech names, while broader market breadth was negative; gold and oil fell, Treasury yields climbed, and the dollar was flat. 

Key Takeaways 

• Mixed Close After Rally: S&P 500 held steady near 5,900, taking a breather after a massive multi-week advance. Nasdaq eked out gains, Dow slipped.
•  Mega-Cap Tech Lifts Nasdaq: Strength in TSLA, NVDA, and GOOGL provided support to the Nasdaq, masking weakness in the broader market. 
• Negative Market Breadth: Decliners outpaced advancers by more than 2:1, indicating underlying selling pressure despite the headline index performance. 
• Trade Deal Optimism Continues: Positive headlines regarding potential U.S. trade deals with Qatar, and ongoing talks with India, Japan, and South Korea (plus a softening tone on China) underpinned sentiment. 
• Gold & Oil Decline: Gold prices fell sharply to a one-month low as safe-haven demand waned, while oil slipped on an unexpected U.S. crude inventory build. 
• Yields Climb, Dollar Flat: Treasury yields rose, with the 10-year topping 4.5%, ahead of key inflation and retail sales data. The dollar index finished near unchanged. 

Market Overview 

U.S. equity markets experienced a day of consolidation, with major indices finishing mixed after a period of significant gains. While the S&P 500 held relatively steady near the 5,900 level and the Nasdaq managed to post further gains, broader market breadth was decidedly negative, indicating that the rally’s momentum might be taking a pause. The outperformance of the Nasdaq was largely attributable to strength in a few heavily weighted mega-cap technology stocks, notably Tesla (TSLA), Nvidia (NVDA), and Google (GOOGL), which did the “heavy lifting” for the index. 

Index	Up/Down	% Change	Last
DJ Industrials	-89.37	-0.0021	42051
S&P 500	6.03	0.001	5892
Nasdaq	136.72	0.0072	19146
Russell 2000	-18.54	-0.0088	2083

The underlying positive sentiment continues to be fueled by optimistic developments on the trade front. Today, President Trump announced deals with Qatar and reiterated that potential agreements with India, Japan, and South Korea are progressing, following Monday’s major U.S.-China tariff reduction announcement. Trump also mentioned he could see himself dealing directly with Chinese President Xi on a trade pact. This flow of positive trade news has significantly eased fears of a full-blown global trade war, encouraging a rotation out of safe-haven assets and into riskier ones. 

However, some sectors continue to struggle. Healthcare remains notably weak, with the sector’s performance relative to the S&P 500 hitting its lowest point since 2001 due to concerns over potential drug price regulations and other policy headwinds. Conversely, the semiconductor index (SOX) continued its strong rebound, now up over 22% from its April lows, and transports have also been significant beneficiaries of the improved trade outlook. Investors are now looking ahead to key economic data on inflation (PPI) and retail sales tomorrow, as well as earnings from major retailers.

Economic Calendar

A heavy slate of economic data is due today, headlined by key U.S. inflation and consumer spending reports, alongside a speech from Fed Chair Powell. Significant European data was also released earlier:

• U.S. Producer Price Index (PPI) for April (MoM & YoY, Core & Headline) 
• U.S. Retail Sales for April (MoM & YoY, Ex-Autos, Control Group) 
• U.S. Initial Jobless Claims (Weekly) 
• U.S. NY Empire State Manufacturing Index for May 
• U.S. Philadelphia Fed Manufacturing Survey for May 
• 3:40 PM ET / 15:40 UTC: Fed Chair Powell Speech

Commodities, Currencies, and Treasuries 

Gold prices fell sharply, with June futures dropping $59.50 (-1.83%) to settle at $3,188.30 per ounce, reaching their lowest level in about a month. The decline reflects a continued rotation out of safe-haven assets as positive trade news boosts risk appetite. Gold is still up significantly year-to-date. Crude oil prices also declined after U.S. government data showed an unexpected build in crude oil stockpiles last week (EIA: +3.5M barrels vs. -1.1M draw forecast), raising concerns about excess supply, especially following recent OPEC+ comments on production. WTI settled down $0.52 (-0.82%) at $63.15/bbl. Treasury yields climbed steadily throughout the day, with the 10-year yield rising above 4.52% ahead of tomorrow’s PPI and retail sales reports. The U.S. dollar index was little changed, recovering from early losses to finish flat. Bitcoin prices eased slightly.

Asset	Up/Down	Unit / % Change	Last
WTI Crude	-0.52	USD/bbl	63.15
Brent	-0.54	USD/bbl	66.09
Gold	-59.5	USD/oz	3188.3
EUR/USD	-0.0001	USD	1.1183
USD/JPY	-0.92	JPY	146.56
10-Year Note	0.019	%	0.04518

Looking Ahead 

The market will closely watch tomorrow’s Producer Price Index (PPI) and Retail Sales data for further insights into inflation trends and consumer health. Earnings reports from major retailers like Walmart (WMT) and Alibaba (BABA) will also be key for gauging consumer spending and the impact of trade dynamics. While trade optimism has fueled the recent rally, the market remains sensitive to any new developments or shifts in tone from Washington or Beijing. The divergence between narrow leadership in some mega-cap tech names and broader market weakness will also be an important factor to monitor.