US Stocks Gain As Hopes Rise For Russia-Ukraine Truce: Markets Wrap
Action in bonds was muted, with the benchmark 10-year yield little changed at 4.22%.
A rally in stocks faded near all-time highs, while Treasuries fluctuated before a $25 billion sale of 30-year bonds that will test investor appetite for longer-term debt.
Following an almost 30% surge from its April lows, the S&P 500 was little changed. An earlier advance was driven by hopes of de-escalation of the war between Russia and Ukraine. A closely watched gauge of chipmakers jumped, but Intel Corp. slipped as President Donald Trump called on its chief to resign, citing conflicts of interest.
Stock rally fades.
Action in bonds was muted, with the benchmark 10-year yield little changed at 4.22%. The dollar edged up.
Federal Reserve Governor Christopher Waller is emerging as a top candidate to serve as the central bank’s chair among President Trump’s advisers as they look for a replacement for Jerome Powell, according to people familiar with the matter.
On the economic front, US continuing jobless claims rose to the highest since November 2021. Labor productivity rebounded along with the economy, resuming a trend of efficiency gains that are keeping a lid on wage-related inflationary pressures.
Meantime, the Bank of England cut rates to the lowest in over two years in a closer-than-expected decision that leaves investors with what Governor Andrew Bailey called “genuine uncertainty” on its next move. The pound climbed after the decision.
Corporate Highlights:
Eli Lilly & Co. tumbled as disappointing data on its new weight-loss pill overshadowed strong growth from the company’s current obesity medicine, which helped drive it to raise its yearly profit and sales outlook.
Peloton Interactive Inc. projected a sales decline for the current quarter and said it would once again cut jobs, but the company preached confidence in a turnaround plan under new management.
Airbnb Inc. slid after the short-term rental company warned that sales growth may moderate in the second half of the year.
Lyft Inc. reported revenue that fell short of Wall Street’s expectations in the second quarter, stoking concerns about its efforts to expand globally.
DoorDash Inc., the largest food delivery service in the US, issued an outlook for orders in the third quarter that surpassed Wall Street’s expectations, a sign that demand for its services remains resilient despite broader concerns about consumer spending.
Warner Bros. Discovery Inc., the parent of HBO and CNN, swung to a profit in the second quarter, buoyed by a string of successes at the box office.
Duolingo Inc. shares soared in post-market trading after it lifted its earnings forecast for the year, citing the better-than-expected performance of its subscription tiers over the second quarter.
Krispy Kreme Inc. will cut its ownership stake in its Western US joint venture as part of its turnaround plan, after the company ended its distribution partnership with McDonald’s Corp. last month.
Ralph Lauren Corp.’s sales topped Wall Street expectations in another sign that the apparel company can overcome sluggish demand in many parts of the consumer sector.
Crocs Inc. dropped after the shoe company said its efforts to save money amid consumer pressure and tariffs would drive down revenue.
Kenvue Inc. slashed its full-year sales target as demand continued to deteriorate and the company searches for a new chief executive officer to help reset the business.
Celsius Holdings Inc.’s second-quarter sales eclipsed expectations, largely driven by the recently acquired Alani Nu brand.
Some of the main moves in markets:
Stocks
The S&P 500 was little changed as of 11 a.m. New York time
The Nasdaq 100 rose 0.5%
The Dow Jones Industrial Average fell 0.5%
The Stoxx Europe 600 rose 0.9%
The MSCI World Index rose 0.2%
Bloomberg Magnificent 7 Total Return Index rose 0.6%
Philadelphia Stock Exchange Semiconductor Index rose 1.4%
The Russell 2000 Index fell 0.4%
KBW Bank Index fell 0.7%
Apple rose 2.8%
Intel fell 3.3%
Currencies
The Bloomberg Dollar Spot Index rose 0.1%
The euro fell 0.3% to $1.1623
The British pound rose 0.4% to $1.3404
The Japanese yen fell 0.1% to 147.52 per dollar
Cryptocurrencies
Bitcoin rose 1.1% to $116,381.17
Ether rose 3.9% to $3,819.79
Bonds
The yield on 10-year Treasuries was little changed at 4.22%
Germany’s 10-year yield declined one basis point to 2.64%
Britain’s 10-year yield advanced two basis points to 4.55%
The yield on 2-year Treasuries was little changed at 3.72%
The yield on 30-year Treasuries declined three basis points to 4.79%
Commodities
West Texas Intermediate crude fell 0.4% to $64.10 a barrel
Spot gold rose 0.5% to $3,387.16 an ounce
In geopolitical news, Trump told European allies he’s planning to meet with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy as soon as next week in another bid to bring peace between the two countries.
In other tariff news, the US also imposed an additional 25% tariff on Indian goods, effectively doubling the rate announced days earlier, over its ongoing purchases of Russian energy. Oil prices fell Wednesday.
Also, Switzerland’s president left Washington without announcing any success in lowering the 39% tariff that Trump has put on her country.
In Asia, data set for release includes trade for Australia and China, inflation expectations in New Zealand and industrial production in Malaysia. Later Thursday, the Bank of England is expected to cut interest rates.
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.2% as of 9:35 a.m. Tokyo time
Hang Seng futures rose 0.3%
Nikkei 225 futures (OSE) rose 0.4%
Japan’s Topix rose 0.5%
Australia’s S&P/ASX 200 was little changed
Euro Stoxx 50 futures were little changed
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.1652
The Japanese yen was little changed at 147.44 per dollar
The offshore yuan was little changed at 7.1848 per dollar
The Australian dollar was little changed at $0.6500
Cryptocurrencies
Bitcoin was little changed at $115,026.26
Ether rose 0.1% to $3,681.05
Bonds
The yield on 10-year Treasuries advanced two basis points to 4.24%
Japan’s 10-year yield advanced three basis points to 1.495%
Australia’s 10-year yield was little changed at 4.25%
Commodities
West Texas Intermediate crude rose 0.3% to $64.56 a barrel
Spot gold rose 0.1% to $3,374.23 an ounce
