• Wall Street equities closed higher on Jun 5, with the DJI rose by +0.25%, the S&P 500 advanced by +1.18%, and the Nasdaq closed up by +1.96%.
• US stocks surged to new records on Wednesday, with the S&P 500 and Nasdaq both closing at all-time highs. The rally was powered by the technology sector, especially chip stocks. Nvidia (NVDA) led the charge, jumping more than 5% and crossing a remarkable USD3tn market capitalization for the first time. Apple (AAPL) also re-entered the USD3tn club, achieving this milestone for the first time since January.
• The 10-yr UST yields fell by -4.0 bps to 4.29% reaching the lowest level since March, while the 2-yr yields slipped by -5.0 bps to 4.72%. Sharp drop in yields reflects a surge in market expectations for a Fed rate cut in September. CME FedWatch data shows 69% now anticipate a cut, up from below 50% last week.
• US MBA mortgage applications fell by -5.2% in the week ending May 31. The purchase mortgage sub-index declined by -4.4%, and the refinancing mortgage sub-index dropped by -6.8%. The average 30-year fixed-rate mortgage increased slightly to 7.07% from 7.05% the week before
• The US labor market showed signs of moderation in May as the ADP National Employment Report revealed a job gain of +152,000. This figure falls short of analyst expectations of +175,000, indicating a potential slowdown in hiring activity.
• Industrial producer prices in the Euro Area fell by 5.7% YoY in April 2024, continuing the trend of annual deflation for the 12th consecutive month. This comes after a 7.8% decrease in March and was higher than the forecasted 5.1% decline.
Global bond yields were mixed on Wednesday: the German bund yield fell by -2.2 bps to 2.51%, while the 10-yr UK gilt yield rose slightly by +0.6 bps to 4.18%, and the Japanese 10-yr JGB yield slid by -1.5 bps to 1.00%.
