Key Points
-
Treasury yields have declined slightly, and this has added more fuel for stocks.
-
Employment figures have come in below expectations, but the stock market remains in the green.
-
Trade policies are still driving uncertainty, so the gains are muted so far.
- Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.(Sponsor)
The stock market has continued to build upon to recovery rally despite uncertainty due to policy changes. In the past few days, the stock market continued the trend of opening red early in the morning and then gaining later on. Today, the stock market opened in the green as Treasury yields declined in tandem, albeit slightly.
Previously, Treasury bonds crossed 5%, but they have now moderated. The 20-year bond is down almost 7 basis points, and the same is the case for the 30-year bond. That said, there have been some weaknesses and lingering pessimism surrounding trade deals, especially with China. Trump doubled tariffs on steel and aluminum from 25% to 50% yesterday, and both the U.S. and China exchanged accusations of the other side not complying with the trade truce that is currently in effect. Employment figures that came in also weren’t promising.
Here’s a market update as of 11:00 AM (ET) today.
- The S&P 500 is up 9.24 points, or 0.15%.
- The Nasdaq Composite is up 38.2 points, or 0.19%.
- The Dow Jones Industrial Average is up 66.37 points, or 0.16%.
Macros
- U.S. ADP Employment change at 37,000 vs. 113,500 forecasted. This is a big miss on jobs, but this has still failed to turn the stock market red. This is a measure of the monthly change in non-farm, private employment, and it could tip the Federal Reserve into finally cutting interest rates.
President Donald Trump said, “Powell must now lower the interest rate. He is unbelievable”.
- U.S. ISM Services PMI came in at 49.9 vs. the 52 forecast. A print below 50 means a contraction in the service sector.
- U.S. ISM Services New Orders Came in at 46.4 vs. the 51.6 forecast.
- U.S. ISM Services Prices Paid came in at 68.7 vs. the 65.1 forecast.
- U.S. ISM Services Employment came in at 50.7 vs. the 49 forecast.
- U.S. S&P Composite PMI came in at 53 vs. the 52.1 forecast.
- U.S. S&P Services PMI came in at 53.7 vs. the 52.3 forecast.
Tariffs and Trade
- The E.U.’s Economy Commissioner has said he is seeing a negative economic impact from tariffs.
- U.S. Trade Representative Greer said negotiations with the E.U. are advancing quickly. “Meeting indicates a willingness by the E.U. to work with the U.S. to find a concrete way forward to achieve reciprocal trade.”
- China is reportedly plotting a giant Airbus order.
- According to Fitch, “U.S. tariff tensions may moderately affect commercial aerospace where supply chains are global and intertwined.”
- Mexico has said it will announce measures next week after Trump increased steel and aluminum tariffs, and it will only take place if there is no agreement.
- U.S. Commerce Secretary Lutnick has said he will set aircraft tariffs by the end of this month.
- Lutnick said he would not remove tariffs or barriers reciprocally if Vietnam dropped all tariffs.
Other Assets
- Gold Futures are up 0.9% to $3,407 per ounce.
- Crude Oil Futures are down 0.2%.
- Natural Gas Futures are down 0.6%.
- Bitcoin is down 0.6% to $104,790.
The image featured at the top of this post is ©denphumi / iStock via Getty Images.