Stocks Rise and Fed Bids Drop US Yields – US Market Wrap

Wall Street traders drove stocks higher as bond yields fell after the latest economic data fuelled expectations that the Federal Reserve will cut interest rates at least twice this year to avoid a recession.

The S&P 500 has risen for the fourth consecutive day. Despite the advance, caution remained in the background after a furious rally raised concerns about an overheated market, with the pendulum swinging in favour of defensive dividend-paying stocks that had underperformed in the previous month. In contrast, the majority of large technology companies fell. Meta Platforms slid on a news report that it was delaying the rollout of its flagship Al model. Shorter maturities drove Treasuries higher.

Prices paid to US producers unexpectedly fell by the most in five years, indicating that companies are absorbing some of the impact of higher tariffs. Retail sales growth has slowed noticeably. Factory output fell for the first time in six months, while New York state manufacturing contracted again. And homebuilders’ confidence fell.

The S&P 500 increased by 0.4%. The Nasdaq 100 showed little change. The Dow Jones Industrial Average rose 0.6%. Cisco Systems surged on strong forecasts. Walmart pared the majority of a slide caused by concerns that it would begin raising some prices. UnitedHealth Group fell on reports that it was under criminal investigation for potential Medicare fraud.
The yield on 10-year Treasuries fell nine basis points, to 4.44%. Long maturities were previously whipsawed by large trades, which briefly pushed the 30-year yield to nearly 5%. The dollar fell 0.2%.
Oil prices fell after Trump said the US and Iran were getting closer to a deal on Tehran’s nuclear program.