Stocks Rally – US Market Wrap
– The rally that powered stocks in early May struggled to gain further traction, with investors split on whether the market can sustain the advance given all the economic crosscurrents.
– JPMorgan Chase & Co. strategists predict that equities will consolidate due to stretched positions. Meanwhile, Bank of America and Citigroup’s contrarian sentiment indicators are approaching levels indicating that it is time to buy stocks. Goldman Sachs Group reported that Commodity Trading Advisors have increased their stock exposure and are expected to continue buying regardless of market direction this week.
– The S&P 500 briefly reached 5,200. Peloton surged after CNBC reported that several private-equity groups are considering a purchase. Walt Disney’s stock fell due to a negative subscriber expectation. Apple witnessed a little increase after introducing a new artificial intelligence-focused iPad Pro and a larger iPad Air.
– Treasury 10-year rates declined three basis points, to 4.45%. A $58 billion offering of three-year notes generated strong demand. This week’s offerings also include $42 billion in 10-year notes Wednesday and $25 billion in 30-year bonds Thursday.
