The S&P 500 Index closed up +0.55% on Tuesday, marking a 3.5-month high, along with the Nasdaq 100, which rose +0.66%. The Dow Jones Industrial Average also increased by +0.25%, achieving a three-month high. Gains were driven by positive sentiment surrounding US-China trade talks, with Commerce Secretary Lutnick stating negotiations were progressing well and would continue as necessary.
In contrast, the World Bank revised its 2025 global GDP forecast down to +2.3% from +2.7%, citing trade tensions. Markets will be looking ahead to reports on US CPI and jobless claims, with the May CPI expected to rise to +2.5% year-over-year. Meanwhile, the bond market saw a mixed reaction, with a $58 billion auction of 3-year T-notes receiving less demand than expected.
Notably, chip stocks rallied, contributing to overall market gains, with Intel (INTC) surging over +7%. Insmed Inc (INSM) experienced a significant increase of +28% following positive trial results for a new treatment. Conversely, JM Smucker (SJM) fell more than -15% after disappointing sales results.
