(Bloomberg) -- U.S. stocks trimmed a monthly advance as a decline in trading revenue at JPMorgan Chase & Co. sent bank shares into a tailspin. Treasuries rose, while the dollar and oil retreated.
The S&P 500 Index all but erased losses in the final hour of trading to finish May higher by 1.2 percent. Lenders slumped Wednesday after JPMorgan said the revenue metric is down 15 percent so far in the second quarter. Banks have been under pressure as 10-year Treasury yields slumped to 2.20 percent. Bloomberg's dollar index retreated to cap a third straight monthly loss. Crude extended losses amid doubts prolonged output cuts will clear a global surplus. Gold climbed.
Banks continued to weigh on U.S. equities as Trump administration promises to roll back regulations and boost growth have yet to stoke inflation expectations in the world's largest economy. Instead, defensive and technology shares have kept markets within striking distance of all-time highs, while the dollar heads for a third straight monthly decline.
The pound's moves are a reminder of the potential risks surrounding a series of national elections in Europe this year. Meanwhile, with key central bank meetings next month on both sides of the Atlantic, investors remain focused on this week's slew of economic data to gauge both the strength of the global economy and the path for interest rates.
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Here are some of the key events coming up:
- The EIA is due to release its monthly supply reports.
- The U.S. jobs report Friday may bolster the case for a rate hike, with a gain of 180,000 positions expected.
Here are the main movers in markets:
Stocks
- The S&P 500 fell 0.1 percent to 2,411.81 at 4 p.m. in New York, trimming its gain this month to 1.2 percent. It closed Friday at a record and is down 0.2 percent since then.
- The Nasdaq 100 Index retreated 0.1 percent to halt an eight-day rally. It advanced 3.7 percent in the month.
- The Stoxx Europe 600 Index lost 0.1 percent.
- The MSCI Emerging Market Index slipped 0.6 percent, trimming its monthly rise to 2.9 percent, the most since February.
Currencies
- The Bloomberg Dollar Spot Index fell 0.2 percent. The measure weakened 1.5 percent in May, the most since January.
- The pound added 0.2 percent to $1.2884. The euro jumped 0.4 percent to $1.1233.
- The yen strengthened 0.1 percent to 110.73 per dollar for a fourth straight day of advances.
Commodities
- Gold futures rose 0.4 percent to $1,270.80 an ounce after a 0.4 percent loss Tuesday.
- West Texas Intermediate oil dropped 2.7 percent to settle at $48.32 a barrel.
Bonds
- The yield on 10-year Treasuries fell one basis point to 2.20 percent after declining four basis points in the previous session.
- Benchmark yields in the U.K. rose one basis point after a drop of two basis points Tuesday.
--With assistance from Samuel Potter Anooja Debnath and Meenal Vamburkar
To contact the reporter on this story: Jeremy Herron in New York at jherron8@bloomberg.net.
To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Cecile Gutscher
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