The S&P 500 Index is up +0.62% with a four-month high, while the Dow Jones Industrials Index has risen +0.71% to a 3.75-month high, and the Nasdaq 100 reached a new all-time high, up +0.58%. Key drivers include stronger-than-expected Q3 EPS results from Micron Technology and a drop in weekly initial jobless claims, which fell by 7,000 to 236,000, below the expected 243,000. Meanwhile, the weekly continuing claims rose by 37,000 to a three-and-a-half-year high of 1.974 million.
US Q1 GDP was revised lower to -0.5%, worse than the anticipated -0.2%, accompanied by an increased May trade deficit of -$96.6 billion, exceeding expectations of -$86.1 billion. Additionally, May nondefense capital goods orders rose +1.7% m/m, significantly ahead of the expected +0.1%. Lower bond yields, with the 10-year T-note yield falling to 4.25%, are boosting equity prices amid speculation of potential Fed rate cuts.
Overseas, the Euro Stoxx 50 is down -0.04%, while Japan’s Nikkei rose +1.65%. The markets await further economic data including May personal income and spending, as well as the June consumer sentiment index, suggesting a tighter focus on indicators that could influence future interest rates.
