S&P Rally Slows as Bullish Bias Fades – US Market Wrap

Wall Street’s epic recovery from April’s meltdown is showing signs of exhaustion, with speculation that stocks have run too fast amid risks ranging from a trade war to an economic slowdown and sticky inflation.

Following a 22% increase from last month’s intraday lows, the S&P 500 fluctuated. Most major groups declined, but big tech rose. Boeing gained after winning its largest-ever deal, with Qatar Airways ordering long-range jets during Trump’s visit to Doha. The dollar recovered losses after reports that the US is not working to include currency policy pledges in trade agreements. Bond yields rose as Federal Reserve rate-cut bets faded.

A sharp rebound in risk assets, fuelled by progress in trade talks and economic resilience, came after a month in which the consensus was to brace for the worst. The US-China truce, a UK agreement, and high-profile Gulf deals have reassured investors, but there is still concern that stocks have become overextended and are vulnerable to surprises.

The S&P 500 increased by 0.1%. The Nasdaq 100 gained 0.6%. The Dow Jones Industrial Average declined 0.2%. A gauge of the “Magnificent Seven” megacaps rose 1.7%. Cisco Systems issued a strong revenue forecast late in the day.
The yield on 10-year Treasuries rose seven basis points to 4.53%. The dollar remained relatively stable.