The S&P 500 Index is up 0.62%, the Dow Jones Industrial Average has increased by 0.22%, and the Nasdaq 100 Index surged 1.32%, marking a new record high on this date. Strong performance by chipmakers and AI-infrastructure stocks, alongside stronger-than-expected corporate earnings, is driving this rally. Notably, 84% of S&P 500 companies that reported Q1 earnings exceeded expectations, with earnings projected to rise 12% year-over-year, according to Bloomberg Intelligence.
In labor market news, April’s nonfarm payrolls increased by 115,000, surpassing estimates of 65,000, while March’s figures were revised upward to 185,000. The unemployment rate remained stable at 4.3%. Concurrently, the U.S. is facing heightened tensions in the Middle East, with Iran seizing an oil tanker in the Strait of Hormuz, raising concerns over oil supply disruptions. Goldman Sachs estimates that current disruptions might deplete global crude stockpiles by nearly 500 million barrels, potentially reaching 1 billion by June.
Additionally, WTI crude oil prices rose on reports of the incident, and the market reflects only a 6% chance of a -25 basis points rate cut at the upcoming FOMC meeting on June 16-17. Today’s developments underscore the ongoing volatility in both stock and commodity markets.
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