Fixed Income Market Overview
Treasury yields remained stable as investors focused on the upcoming key inflation report on Friday. The 10-year Treasury yield held steady at 4.259%, while the 2-year yield edged up by 1 basis point to 4.743%. With a summer interest rate cut from the Federal Reserve unlikely, markets are looking to September for potential changes, hinging on the personal consumption expenditures price index expected to show a cooling inflation rate. Traders are pricing in a 66% chance of a September rate cut. Key economic data and speeches from Fed officials will be closely watched this week.
EU and China set for talks on planned electric vehicle tariffs.
Oil prices start last week of June higher, on pace for monthly gain as Israel – Lebanon tensions simmer.
European markets close higher as investors look ahead to fresh data.
Nvidia shares set for biggest daily drop since April as slide continues.
Fast fashion retailer Shein confidentially files for London IPO as U.S. listing stalls.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,411.21 | 260.88 | 0.67%↑ |
| NASDAQ | 19,474.62 | -225.81 | -1.15%↓ |
| S&P 500 | 5,447.87 | -16.75 | -0.31%↓ |
| NIKKEI | 38,804.65 | 208.18 | 0.54%↑ |
| HSI | 18,027.71 | -0.81 | 0.00%↓ |
| VIX | 13.33 | 0.13 | 0.98%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.24% | -0.02 |
| US 30-YR | 4.37% | -0.03 |
| US 5-YR | 4.26% | -0.02 |
| JPN 10-YR | 0.99% | 0.01 |
| UK 10-YR | 4.08% | 0.00 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 81.63 | 0.90 | 1.11%↑ |
| NAT GAS | 2.811 | 0.106 | 3.92%↑ |
| GOLD | 2,344.40 | 13.20 | 0.57%↑ |
| SILVER | 29.53 | -0.09 | -0.30%↓ |
| COPPER | 4.437 | -0.005 | -0.11%↓ |
Equity Market Overview
On Monday, the Dow Jones Industrial Average rose 341 points (0.9%) as investors shifted from big tech to sectors like banks and energy. The S&P 500 increased by 0.3%, while the Nasdaq Composite fell by 0.3%. Information technology was the only sector in the red, down 0.8%, while energy, financials, and utilities each gained over 1%. Key Dow members JPMorgan Chase, Goldman Sachs, and Chevron rose by more than 1%. Nvidia dropped 5%, following a 4% decline last week, despite being up 150% for the year. Analyst Larry Tentarelli described the tech pullback as healthy, indicating a positive rotation into other sectors. The market, buoyed by AI enthusiasm, has seen the S&P 500 rise nearly 15% this year. Investors are now looking to May’s personal consumption expenditure data, the Federal Reserve’s preferred inflation gauge, due on Friday. This comes after a record-setting week for the S&P 500 and Nasdaq, marking the end of June and the first half of 2024.
