Market Recap – Tuesday, June 10, 2025
US Equities Finish Higher Amid Quiet Trading
Stocks closed mostly higher today, with the S&P 500 up by 0.55% and the Nasdaq gaining 0.63%. The S&P 500 is now just a little under 2% from its record high in February, and the Nasdaq is about 2% off its December peak. Big tech stocks were strong, with Tesla (TSLA-US) bouncing back and Alphabet (GOOGL-US) seeing gains after announcing a deal with OpenAI. Sectors like energy, chemicals, homebuilders, and airlines also performed well. However, sectors like insurance, exchanges, and restaurants lagged behind.
Key Highlights
US-China Trade Talks: Markets are closely watching the ongoing trade talks between the US and China in London. There are expectations that both sides may relax certain export restrictions, especially on rare earth minerals and technology.
Treasuries & Dollar: Treasury yields were mostly unchanged, while the US dollar saw a small increase of 0.1%. Oil prices dropped slightly, down 0.5%.
Small Business Confidence: The NFIB Small Business Optimism Index showed a positive increase in May, signaling improved business sentiment after a period of declines.
Looking Ahead
We are waiting for the May CPI (inflation) report tomorrow, which is expected to show a slight rise in prices, especially on goods affected by tariffs. The market will also be keeping an eye on the 30-year bond auction later this week, and trade talks with China.
Here's Our Take
As we head into mid-week, let’s watch for the CPI report tomorrow and any updates from the US-China trade talks. The improvement in small business confidence and strength in some sectors offers optimism. However, trade risks and inflation pressures could cause some short-term market fluctuations. It’s a good time to stay cautious while monitoring these key events.
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