US Indices Climb on Trade Optimism – US Market Wrap

Wall Street began the week with a stock rally as consumer confidence recovered sharply and the United States and the European Union accelerated trade talks. A global bond rally also boosted sentiment.

The S&P 500 rose 2% after equities ended a four-day slide. Nvidia accelerated gains in megacaps ahead of its results. Treasuries rallied, pushing the 30-year yield below 5% on signs that Japan will be ready to calm jittery debt markets. The moves in the United States continued after a sale of two-year notes met with strong bidding metrics. The dollar strengthened against all developed-market currencies.

Trump stated that he is encouraged that the EU is speeding up trade negotiations, days after warning that the bloc would face 50% tariffs if a deal with the US was not reached. Following a call with European Commission President von der Leyen, Trump extended the deadline for those taxes to go into effect to July 9.

Meanwhile, global bonds rose as Japanese authorities indicated that they are considering adjusting their debt plan following a selloff that drove the country’s long-term borrowing costs to their highest levels in decades. Concerns about governments’ ability to fund massive budget deficits have weighed on developed-market debt in recent days.

The Nasdaq 100 gained 2.4%. The Dow Jones Industrial Average rose 1.8%. Nvidia gained more than 3%, while Apple reversed its longest selloff in more than three years.
The yield on 10-year Treasuries fell seven basis points, to 4.44%. The dollar gained 0.5%. The yen fell 1%.