On Wednesday, the S&P 500 Index closed up 0.01%, while the Dow Jones Industrials Index fell 0.22%, and the Nasdaq 100 Index increased by 0.27%. The S&P 500 reached a 3.25-month high and was positively impacted by lower bond yields, with the 10-year T-note yield dropping 9 basis points to 4.36%, its lowest in 3.5 weeks.
Key economic indicators included the May ADP employment change, which rose by only 37,000—well below expectations of 114,000—and the May ISM services index, which unexpectedly contracted to 49.9. This marked the first contraction in 11 months. Additionally, U.S. MBA mortgage applications fell by 3.9% for the week ending May 30, as the average 30-year fixed mortgage rate decreased to 6.92%.
Overseas, the Euro Stoxx 50 rose 0.55%, while China’s Shanghai Composite increased by 0.42%. In the U.S. stock market, ON Semiconductor Corp led gains in the S&P 500, closing up more than 5%, driven by signs of recovering demand for chips. Conversely, Dollar Tree led losses, falling over 8% after it forecasted lower-than-expected net sales.
