US Stocks Rise as Treasury Yields and Oil Prices Fall
A 5-minute read of yesterday's US session and today's catalysts — what to watch before pre-market opens at 21:30 HKT.
TL;DR
The US stock market rose on Friday, with the S&P 500 closing at 7,431.46, up +0.50% and the Nasdaq 100 closing at 29,635.95, up +0.64%. The Dow Jones also rose, closing at 51,202.26, up +0.70%.
The market's gains were driven by a decline in Treasury yields and oil prices, with the 10Y Yield falling to 4.49 and WTI Crude prices dropping to 84.88. The VIX also fell, closing at 17.68, down -9.05%.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,431.46 | +0.50% | New high |
| Nasdaq 100 | 29,635.95 | +0.64% | Tech stocks lead |
| Dow Jones | 51,202.26 | +0.70% | Financials strong |
| Russell 2000 | 2,943.99 | +0.79% | Small caps outperform |
| VIX | 17.68 | -9.05% | Fear index falls |
| 10Y Yield | 4.49 | +0.54% | Treasury yields rise |
| WTI Crude | 84.88 | -3.23% | Oil prices drop |
Top large-cap movers
JPM rose +2.31% to 320.72, while GS gained +2.62% to 1,062.75. On the other hand, AAPL fell -1.52% to 291.13, and AMZN dropped -1.23% to 238.55.
Spotlight
| Key Metrics | Value |
|---|---|
| TSLA Stock Price | 406.43 |
| TSLA Daily Change | +1.82% |
| TSLA Market Cap | 1.23T |
TSLA stock rose +1.82% to 406.43 on Friday, driven by strong demand for electric vehicles. The company's market capitalization now stands at 1.23T. With the stock's recent gains, investors are watching closely to see if TSLA can continue its momentum.
Macro & Fed
- Current policy rate: 4.50%
- Yield levels: 10Y Yield at 4.49, 2Y Yield at 4.51
- Today's data releases:
- 08:30 HKT: Non-Farm Payroll
- 10:00 HKT: ISM Manufacturing Index
Geopolitics & Global
- US-China trade tensions: The US and China are set to resume trade talks, with a focus on resolving outstanding issues.
- European economic outlook: The European Central Bank is expected to raise interest rates to combat inflation.
- Global oil market: OPEC is considering a production cut to stabilize oil prices.
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| June 15, 21:00 HKT | ORCL | Q4 earnings, cloud revenue growth |
| June 16, 21:00 HKT | CSCO | Q4 earnings, networking sales |
Stocks Worth Watching
- NVDA: Up +0.16% to 205.19, watch for further gains in the semiconductor sector.
- GOOGL: Up +0.53% to 359.68, monitor for updates on the company's AI initiatives.
- JPM: Up +2.31% to 320.72, track the bank's performance amidst rising interest rates.
- GS: Up +2.62% to 1,062.75, watch for the investment bank's Q2 earnings report.
What Could Break the Tape
A surprise interest rate hike by the Federal Reserve could send shockwaves through the market, potentially leading to a -5% decline in the S&P 500.
A strong Non-Farm Payroll report could boost investor confidence, potentially driving the Dow Jones up +2% and the Nasdaq 100 up +3%.