Closing Recap 

U.S. stocks finished mostly lower after surrendering strong afternoon gains late in the session, snapping the S&P 500’s long winning streak; Treasury yields rose on strong services data, oil prices tumbled further on OPEC+ news, and gold surged. 

Key Takeaways 

• Win Streaks Snapped: The S&P 500 and Dow’s 9-day winning streaks ended as markets pulled back into the close after failing to hold afternoon highs. 
• Late Day Fade: Stocks rallied strongly mid-afternoon on positive ISM data and trade commentary but gave back most gains in the final 30 minutes.
• ISM Services Beats: The ISM Non-Manufacturing PMI beat expectations and remained expansionary, with a notable jump in the Prices Paid component. 
• Trade Talk Optimism Lingers: Comments from President Trump over the weekend suggesting willingness to lower China tariffs provided underlying support. 
• OPEC+ Output Hike Weighs on Oil: Crude prices fell sharply again as the market digested news of accelerated OPEC+ production increases. 
• Gold Surges: Gold prices climbed significantly, driven by safe-haven demand and a weaker dollar early in the session. 
• Yields Rise: Treasury yields finished higher, particularly at the long end, reacting to the strong ISM data, especially the inflation component. 
• Fed Meeting Looms: Investors look ahead to the FOMC policy decision on Wednesday. 

Market Overview 

The impressive multi-day rally in U.S. stocks finally hit a speed bump today, with major averages finishing mostly in negative territory and snapping the lengthy winning streaks for the S&P 500 and Dow Jones Industrials (both 9 days). The session was characterized by volatility; after a relatively subdued start, stocks rallied sharply in the afternoon, boosted by a better-than-expected ISM Services PMI report and lingering optimism from President Trump’s weekend comments hinting at potential reductions in China tariffs. The ISM data showed continued expansion in the dominant services sector, and critically, a significant jump in the Prices Paid component, potentially reigniting inflation concerns. 

Index	Up/Down	% Change	Last
DJ Industrials	-98.29	-0.0024	41219
S&P 500	-36.08	-0.0063	5650
Nasdaq	-133.49	-0.0074	17844
Russell 2000	-16.47	-0.0082	2004

However, the afternoon strength proved unsustainable. Markets gave back the bulk of their gains in the final half-hour of trading, closing near the lows of the late-day range. This fade suggests that despite the recent powerful rebound (which recovered much of the steep April losses), underlying caution persists. Investors remain wary amidst the ongoing trade uncertainties, even with slightly softer rhetoric, and are looking ahead to potential catalysts like the Federal Reserve meeting on Wednesday and a continued heavy flow of corporate earnings reports. While the “Sell in May” adage hasn’t fully materialized yet, today’s pullback serves as a reminder of the market’s fragility.

Economic Data

The key data point yesterday was the ISM Services report, which beat expectations but also showed rising price pressures. 

• ISM Non-Manufacturing PMI (Apr): Rose to 51.6, beating the 50.6 consensus and up from 50.8 in March. New Orders (52.3) improved, but Business Activity (53.7) eased slightly. Employment (49.0) remained in contraction. Notably, the Prices Paid index jumped to 65.1 from 60.9. 
• S&P Global Services/Composite PMI (Apr Final): Final readings were revised slightly lower (Composite 50.6, Services 50.8) from the flash estimates but still indicated expansion. 

Commodities, Currencies, and Treasuries 

Gold prices surged again, with June futures gaining $79.00 (+2.37%) to settle at $3,322.30 per ounce. The rally was fueled by safe-haven demand persisting amid trade uncertainties and likely aided by dollar weakness earlier in the session before the greenback recovered somewhat. Crude oil prices continued their sharp decline, pressured by the confirmation of accelerated OPEC+ production hikes starting in May and extending through the summer. WTI fell $1.16 (-1.99%) to settle at $57.13/bbl, while Brent also dropped significantly. Treasury yields pushed higher across the curve, particularly at the longer end, erasing earlier declines following the strong ISM Services data and its elevated inflation component. The 10-year yield finished up nearly 2 basis points around 4.339%. A 3-year Treasury note auction saw decent demand. The U.S. dollar was mixed, gaining slightly against the Yen but weakening against the Euro.

Asset	Up/Down	Unit / % Change	Last
WTI Crude	-1.16	USD/bbl	57.13
Brent	-1.06	USD/bbl	60.23
Gold	79	USD/oz	3322.3
EUR/USD	0.0014	USD	1.1308
USD/JPY	-0.9	JPY	144.04
10-Year Note	0.019	%	0.04339

Looking Ahead 

The market snapped its impressive winning streak today, highlighting lingering caution despite recent optimism. All eyes now turn to the Federal Reserve’s policy announcement and press conference on Wednesday. While no rate change is expected, Chair Powell’s commentary on inflation, growth, and the potential impact of tariffs will be intensely scrutinized. The heavy slate of Q1 earnings reports continues, providing further insight into corporate health. Developments on the trade front and reactions to the OPEC+ production increases will also remain key factors influencing market direction.