Closing Recap 

U.S. stocks continued their strong rally, led by technology shares boosted by positive earnings, while gold plunged, oil rebounded, the dollar surged, and Treasury yields reversed higher despite mixed economic data. 

Key Takeaways 

• Rally Extends: Major indices posted significant gains, with the S&P 500 marking its 8th consecutive winning session. 
• Tariff Headlines Subdued but Present: Positive developments like potential US/Ukraine deal and ongoing talks noted, though Trump maintained pressure on China. 
• Sentiment Improves, Fear Remains: Sentiment indicators (NAAIM, AAII) showed improvement but still reflected high levels of underlying fear and bearishness. Fear & Greed Index moved to “Neutral”. 
• Economic Data Mixed: Jobless claims ticked higher, construction spending fell, while ISM Manufacturing beat low expectations but remained in contraction. Atlanta Fed Q2 GDP estimate lowered.
• Gold Plunges: Gold prices suffered a sharp pullback, giving back a large portion of recent gains as risk appetite improved and the dollar surged. 
• Oil Rebounds, Dollar Surges: Crude oil recovered from recent lows, while the U.S. dollar rallied strongly, particularly against the Japanese Yen following BOJ comments. Treasury yields reversed early declines to finish higher. 

Market Overview 

The positive momentum continued unabated on Wall Street, as U.S. stocks kicked off May with another day of strong gains, extending the remarkable rally that began in late April. The S&P 500 notched its eighth straight positive session, having now retraced roughly three-quarters of its February-April decline. Sentiment has clearly improved from the depths of tariff-induced fear, driven largely by a Q1 earnings season that has proven better than many anticipated, alongside hopes (however tentative) for de-escalation on the trade front. 

Index	Up/Down	% Change	Last
DJ Industrials	83.42	0.0021	40752
S&P 500	35.04	0.0063	5604
Nasdaq	264.4	0.0152	17710
Russell 2000	11.74	0.006	1975

While earnings took center stage, trade headlines remained a factor. Reports noted potential progress in US/Ukraine talks and other negotiations, though President Trump continued to exert pressure on China. Despite the equity rally, economic data released today was mixed at best. Weekly jobless claims edged higher, March construction spending unexpectedly declined, and while the ISM Manufacturing index beat forecasts, it remained in contraction territory, with weak new orders and employment components. Furthermore, the Atlanta Fed significantly lowered its Q2 GDP growth forecast following the data. Sentiment indicators are improving off extreme fear levels but still show considerable underlying caution among investors.

Economic Data

Economic data today painted a mixed picture, with rising jobless claims and falling construction spending contrasting with a slightly better-than-expected (but still weak) manufacturing survey. 

• Challenger Job Cuts (Apr): Fell sharply by 62% from March but remained 63% higher year-over-year. Hiring plans remained sluggish. 
• Weekly Jobless Claims: Climbed to 241,000 from 223,000 prior, slightly above the 224,000 consensus. Continuing claims also rose to 1.916 million. Insured unemployment rate ticked up to 1.3%. 
• Construction Spending (Mar): Declined -0.5%, missing the +0.2% consensus forecast and reversing February’s +0.6% gain. Both private and public spending fell. 
• ISM Manufacturing PMI (Apr): Came in at 48.7, slightly better than the 48.0 consensus but still below the 50 contraction threshold and down from 49.0 in March. Prices Paid (69.8) remained elevated, while New Orders (47.2) and Employment (46.5) stayed weak. 
• S&P Global US Mfg PMI (Apr Final): Revised lower to 50.2 from the 50.7 flash reading. 
• Atlanta Fed GDPNow (Q2 Forecast): Lowered estimate to 1.1% from 2.4% following today’s data releases. 

Commodities, Currencies, and Treasuries 

Gold prices experienced a sharp sell-off, with June futures plunging $96.90 (-2.92%) to settle at $3,222.20/oz. The decline came as risk appetite improved markedly, reducing safe-haven demand, and as the U.S. dollar surged higher. Crude oil prices rebounded, with WTI gaining $1.03 (+1.77%) to settle at $59.24/bbl. Strong earnings supporting equities likely offset lingering economic growth concerns and potential OPEC+ output increases. Natural gas futures also climbed. The U.S. dollar index rallied strongly (+0.78%), boosted perhaps by relative economic perceptions or technical factors. The dollar surged notably against the Japanese Yen after the Bank of Japan maintained its dovish stance and pushed back inflation target timelines. Treasury yields reversed early declines to finish higher across the curve, with the 10-year yield climbing over 5 basis points to 4.228%, seemingly ignoring the weak ISM data and focusing on the equity rally or technical positioning. Bitcoin continued its upward trend, rising over 2%.

Asset	Up/Down	Unit / % Change	Last
WTI Crude	1.03	USD/bbl	59.24
Brent	1.07	USD/bbl	62.13
Gold	-96.9	USD/oz	3222.2
EUR/USD	-0.0039	USD	1.1288
USD/JPY	2.46	JPY	145.54
10-Year Note	0.053	%	0.04228

Looking Ahead 

Earnings season remains front and center, with results from Apple (AAPL) and Amazon (AMZN) tonight providing critical insights for the tech sector and overall market sentiment. The focus today shifts squarely to the official April Nonfarm Payrolls report, which will offer a key assessment of the labor market’s health amid ongoing economic uncertainties and trade tensions. Any significant deviation from expectations could heavily influence market direction and Fed policy perceptions. Trade headlines, while quieter today, remain a potential source of volatility.