The S&P 500 Index is up +0.28% while the Dow Jones is up +0.06% and the Nasdaq 100 is up +0.25% as of today. June E-mini S&P futures and Nasdaq futures have seen increases of +0.23% and +0.24%, respectively. This market rebound follows Fed-friendly U.S. jobless claims and PPI reports that contributed to lower bond yields, with the 10-year T-note yield down -4 basis points to 4.38%.
Initial jobless claims remained unchanged at an eight-month high of 248,000, against expectations for a decline to 242,000. Continuing claims rose by 54,000, reaching a three-and-a-half-year high of 1.956 million. The May final-demand PPI increased to +2.6% year-over-year, matching expectations, while PPI ex-food and energy eased to +3.0% y/y, better than anticipated.
Looking ahead, markets will focus on any new tariff news, as President Trump plans to send letters regarding unilateral tariffs to various U.S. trading partners within the next week. Additionally, tensions in the Middle East have risen, with U.S. authorities ordering staff departures from the embassy in Baghdad amid threats from Iran over its nuclear program.
