The S&P 500 Index closed up +0.52%, the Dow Jones Industrials up +0.63%, and the Nasdaq 100 up +0.64% on the last day of Q2. Positive trade news regarding negotiations with China and the EU contributed to the gains, with the S&P 500 and Nasdaq 100 achieving new all-time highs.
Lower bond yields also supported the market, with the 10-year T-note yield falling to an 8-week low of 4.22% following weaker-than-expected US economic data, including the June MNI Chicago PMI at 40.4, below expectations of 43.0. The Senate is reviewing a reconciliation bill projected to increase US deficits by nearly $3.3 trillion over the next decade.
In corporate news, Home Depot announced its acquisition of GMS Inc. for $4.3 billion, and AbbVie agreed to buy Capstan Therapeutics for $2.1 billion. The upcoming earnings season may present challenges, as the consensus for Q2 earnings of S&P 500 companies projects a meager 2.8% year-over-year rise.
