United States

Wall Street ended Thursday with a cautious tone after a strong start powered by Nvidia’s solid earnings. The S&P 500 trimmed most of an early 1% gain to close up just 0.4%, while the Nasdaq 100 and Dow Jones added 0.2% and 0.3%, respectively. Nvidia was a clear standout, climbing over 3%, buoyed by a 69% jump in first-quarter sales and investor excitement around its AI chips.

Yet, this optimism was tempered by sobering economic data. The US economy contracted in the first quarter, held back by weaker consumer spending and a bigger-than-expected trade drag. Pending home sales dropped sharply—the worst since September 2022—and rising jobless claims pointed to softening labour market conditions. Meanwhile, President Trump continued his criticism of Fed Chair Jerome Powell for not cutting rates, adding political uncertainty to the mix.

On the trade front, a federal appeals court granted Trump a temporary reprieve against a ruling that threatened to overturn most of his tariff policies, signalling the tariffs saga isn’t over yet. This legal twist helped push Treasury yields lower, with the 10-year yield falling five basis points to 4.43% amid expectations for two rate cuts this year. The US dollar weakened by 0.4%, reflecting these dovish bets.

Corporate news was mixed: Salesforce showed progress with its AI offerings but revenue growth worries lingered; United Airlines flagged profit hits from Newark disruptions; and Best Buy trimmed its outlook due to tariff pressures. Meta Platforms announced a partnership to develop AI-powered military gear, while Synopsys suspended guidance amid new export restrictions to China.

Europe

European stocks edged slightly lower, with the Stoxx Europe 600 down 0.1%. Utilities and personal care sectors lagged, while banks and real estate posted gains. Early strength faded after the US court ruling on tariffs prompted cautious sentiment. Senior White House officials downplayed the court’s impact, underlining ongoing uncertainty around US trade policy.

Trade tensions continue to weigh, with Europe’s benchmark index tracking its best monthly gain since January but still sitting just under its March record. Seasonal trends aren’t helping — June historically tends to be a weak month for European equities.

Among notable movers, Auto Trader Group sank 11% after analysts cut their outlook, highlighting how cautious investors remain amid global economic concerns.

*Note: These prices are based on futures and/or CFD pricing and may therefore differ slightly from spot pricing.

Commodities

Commodity markets were mixed overnight. Brent crude slipped towards US$64 a barrel amid worries about rising oil output, down around 1.2%. Meanwhile, gold regained ground, rising about 0.9% to just over US$3,316 an ounce as safe-haven demand ticked up amid trade concerns.

Iron ore rose 1% to US$97 a tonne, supported by optimism around Chinese demand, while industrial metals broadly eased. Bitcoin dropped 1.1% to about US$106,300, reflecting risk-off sentiment, while the Aussie dollar edged up 0.3% to US64.42¢.

Bond markets remain volatile, with the US 10-year yield steady around 4.42% and Australia’s 10-year at 4.37%, both reflecting market jitters around growth and policy directions.

Economic Calendar

US:

• PCE Inflation (Apr) 10:30pm
• University of Michigan Consumer Sentiment (May) 00:00