4th Consecutive Record for S&P 500 – US market Wrap
Daily Dose, US

4th Consecutive Record for S&P 500 – US market Wrap

Stocks closed at a fresh all-time high as tech rallied, with Treasury yields sinking on bets the Federal Reserve will cut rates this year amid signs of disinflation.

Following a brief decline, equities rebounded, with the S&P 500 setting a fourth consecutive record, the 29th this year. Treasuries rallied throughout the curve, with 10-year rates falling below 4.3%. A $22 billion offering of 30-year debt drew high demand. France’s 10-year bond premium over German counterparts has reached its highest level since 2017, owing to increased political risk.

The producer price index fell unexpectedly by the highest in seven months, adding to evidence that inflationary pressures are easing. Several categories used to compute the Federal Reserve’s preferred inflation measure, the personal consumption expenditures price index, were lower in May than a month earlier.

The S&P 500 topped 5,430. Tesla jumped after Elon Musk said shareholders backed his compensation package. Broadcom led a rally in chipmakers after announcing solid earnings and a 10-for-1 stock split. GameStop climbed as Keith Gill, known as “Roaring Kitty,” posted on X.

Treasury 10-year yields fell eight basis points to 4.24%. Aside from France’s political jitters, the European Union’s bonds got hit as bets they would soon be added to key sovereign benchmarks received a blow, undermining the bloc’s efforts to broaden the appeal of its debt.