Rally Reignited: How Tuesday’s 0.6% Surge Sets the Stage for the Next Fed Move
Market News 30 apr
On Tuesday, U.S. indices once again showed upward momentum: the S&P 500 gained 0.58%, the Dow Jones Industrial Average rose 0.75%, and the Nasdaq 100 strengthened by 0.61%. June E-mini S&P futures climbed 0.60%, while June E-mini Nasdaq futures were up 0.56%. Softer-than-expected U.S. jobs and consumer-confidence data pushed 10-year Treasury yields down to a three-week low, fueling hopes for an upcoming Fed rate cut.
Market Backdrop and Trading Dynamics
Investors began the session cautiously amid tariff uncertainty: the Treasury Secretary mentioned talks with 17 major trading partners, excluding China. Meanwhile, a presidential order easing duplicate tariffs on imports (including auto parts) alleviated some concerns. A drop in the consumer-sentiment index to 86.0 (versus forecasts of 88.3) added a bearish note—yet lower Treasury yields spurred a late-day rally.
Sector Performance and Corporate Reports
Within the S&P 500, the strongest gains came from Financials (+1.0%), Materials (+0.9%) and Consumer Discretionary (+0.8%). Energy was the lone laggard, as Brent crude slid 2.7% to $60.42/bbl, weighing on oil-and-gas stocks.
Honeywell beat Q1 EPS expectations and jumped 5.4%.
Sherwin-Williams climbed 4.8% following robust revenue.
General Motors fell 0.6% after reporting results that excluded tariff impacts.
Key Economic Data
Recent releases showed:
U.S. trade deficit widened to $162.0 bn in March (vs. $145.0 bn expected).
Retail inventories dipped 0.1%, while wholesale stocks rose 0.5%.
The FHFA home-price index ticked up 0.1%; Case-Shiller rose 4.5% year-over-year.
JOLTS job openings in March fell to 7.192 m from a revised 7.480 m.
Looking Ahead
Traders are eying several upcoming reports: MBA mortgage applications, ADP employment for April, Q1 labor-cost data, preliminary Q1 GDP and GDP deflator, Chicago PMI, March pending home sales, plus personal income, spending, and the core PCE Index for March.
Corporate News Highlights
SBA Communications surged over 6% after raising its full-year revenue guide.
Cadence Design Systems added 5%+ on an upward EPS guide.
Okta jumped 7%+ after inclusion in the S&P MidCap 400 effective May 1.
Regeneron dropped over 7% on Q1 revenue below consensus.
NXP Semiconductors slid 6%+ as its CEO announced retirement and tariff risks loom.
Bond Markets & Global Scene
June 10-year Treasuries saw yields fall 3.6 bp to 4.172% as prices rebounded to a three-week high. In Europe, German Bund yields dropped to 2.497%, U.K. Gilt yields to 4.480%. The Euro-zone Economic Sentiment Index fell to a four-month low of 93.6, while ECB inflation expectations for one-year ahead unexpectedly rose to 2.9%.
Despite U.S. gains, European bourses closed lower (Euro Stoxx 50 -0.17%), and China’s Shanghai Composite hit a one-week low (-0.06%). Japanese markets were closed for a public holiday.