US Stocks Jump On Consumer Confidence, Trade Talks: Markets Wrap

Wall Street kicked off the week with big gains in stocks on renewed optimism about the economic trajectory after US consumer confidence rebounded and the US and the European Union sped up trade negotiations. A global rally in bonds also helped sentiment on signs that Japan will be ready to calm jittery debt markets.

As US markets reopened after a long holiday weekend, equities halted a four-day slide, with the S&P 500 up more than 1.6%. Nvidia Corp. paced gains in megacaps on the eve of its results. Treasuries also got a boost, pushing the 30-year yield below 5%. The dollar advanced against all of its developed-market peers.

Stocks climb on trade talks.

President Donald Trump said he was encouraged the EU is speeding up negotiations on trade, days after he said the bloc would face 50% tariffs if they fail to reach a deal with the US. Trump has said he would hit the EU with a 50% tariff on its goods, but extended a deadline for those taxes to take effect to July 9 after a call with European Commission President Ursula von der Leyen.

“The EU tariff reprieve until July 9 is an important step in the overall resolution of this trade situation, as it increases the chances that trade deals will continue to come to fruition, which is the exact messaging that the market is hoping for,” said Robert Ruggirello at Brave Eagle Wealth Management.

Meantime, global bonds rallied as Japanese authorities signaled they are considering adjusting their debt plan after a selloff that drove the nation's long-term borrowing costs to the highest levels in decades. Worries about the ability of governments to cover massive budget deficits weighed on developed-market debt in recent days.

The Nasdaq 100 added around 2%. A gauge of the “Magnificent Seven” megacaps rallied nearly 2.5%, while Apple Inc. halted its longest selloff in more than three years.

The yield on 10-year Treasuries fell. The Bloomberg Dollar Spot Index rose 0.4%.

Corporate Highlights:

• An upbeat earnings report by Nvidia Corp. on Wednesday would bode well for a rally in US equities as investors have about $7 trillion parked in cash funds, according to BBVA strategists.

• Salesforce Inc. has agreed to acquire Informatica Inc. for about $8 billion, barely a year after an earlier effort fell through.

• Advanced Micro Devices Inc. was upgraded to hold from reduce at HSBC, which cited “the recent re-rating on the back of the Saudi AI deal, as well as tariff de-escalation.”

• The Swiss National Bank sold its entire stake in oil producer Chevron Corp. because it now considers investments in the stock to breach its portfolio guidelines, according to a person familiar with the matter.

• Shares of Temu owner PDD Holdings Inc. plunged after its quarterly sales and profit missed estimates, underscoring how trade tensions between Beijing and Washington are taking a toll on its business.

• Taiwan Semiconductor Manufacturing Co. will open a design center in Munich, part of an effort to establish a bigger footprint in Europe.

• Bank of Nova Scotia missed estimates after setting aside more money than expected for bad credit as tariffs hit its Canadian and Mexican operations.

• The US Supreme Court cleared a major obstacle to Rio Tinto Plc's construction of North America's largest copper mine, rejecting an appeal by a Native American group that said the Arizona project will destroy a sacred area.

• Circle Internet Group Inc. and some of its backers are seeking to raise up to $624 million in a long-awaited initial public offering, as crypto companies increasingly tap the public markets to raise funds.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 1.7%, more than any closing gain since May 12 as of 11:34 a.m. New York time

• The Nasdaq 100 rose 2%, more than any closing gain since May 12

• The Dow Jones Industrial Average rose 1.3%, more than any closing gain since May 12

• The Stoxx Europe 600 rose 0.5% to the highest since May 21

• The MSCI World Index rose 1.2%, more than any closing gain since May 12

Currencies

• The Bloomberg Dollar Spot Index rose 0.4%, more than any closing gain since May 12

• The euro slipped 0.5%, more than any closing loss since May 12

• The British pound slipped 0.4%, more than any closing loss since May 12

• The Japanese yen slipped 1%, more than any closing loss since May 12

Cryptocurrencies

• Bitcoin rose 0.1% to $109,758.08

• Ether rose 3.7% to $2,661.17

Bonds

• The yield on 10-year Treasuries declined six basis points to 4.45%

• Germany's 10-year yield declined two basis points to 2.54%

• Britain's 10-year yield declined one basis point to 4.67%

Commodities

• West Texas Intermediate crude fell 1.7% to $60.50 a barrel

• Spot gold fell 1.5%, more than any closing loss since May 14