Stocks Bounce From Lows on US-China Trade Hopes: Markets Wrap
(Bloomberg) -- A renewed bout of volatility gripped stocks in the last stretch of the month, with the market bouncing from session lows after Donald Trump said he expected to speak to Xi Jinping after accusing China of a trade-deal breach.
Following a rally that put the S&P 500 on track for its best May since 1990, the gauge fell as much as 1.2% before paring most of its losses. Action was muted in bonds, though Treasuries were set for their first monthly drop this year. The dollar barely budged, while heading toward a fifth straight month of declines - the longest losing run since 2020.
“Uncertainty about what happens next on tariffs or other leverage Trump could use in negotiations is high,” said Dennis DeBusschere at 22V Research. “We understand that higher uncertainty is a headwind for riskier assets.”
Corporate Highlights:
- Taiwan Semiconductor Manufacturing Co. is evaluating building an advanced production facility in the United Arab Emirates, according to people familiar with the matter.
- Gap Inc. tumbled after the apparel retailer predicted a tariff impact of as much as $300 million, offsetting better-than-expected results at its biggest brands.
- Palantir Technologies Inc. climbed after the New York Times reported that the Trump administration has expanded the data-analysis software company’s work across the federal government in recent months.
- Marvell Technology Inc. fell as analysts said the company failed to meet expectations on artificial intelligence.
- Costco Wholesale Corp. posted better-than-expected earnings in the third quarter, a sign that the nation’s largest club chain is flexing its scale and devoted following to navigate tariffs and economic turbulence.
- Ulta Beauty Inc. surged after first-quarter results topped estimates, signaling that shoppers are buying up beauty products despite growing economic concerns.
Some of the main moves in markets:
Stocks
- The S&P 500 fell 0.3% as of 2:35 p.m. New York time
- The Nasdaq 100 fell 0.6%
- The Dow Jones Industrial Average was little changed
- The MSCI World Index fell 0.2%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1359
- The British pound fell 0.2% to $1.3469
- The Japanese yen rose 0.2% to 143.86 per dollar
Cryptocurrencies
- Bitcoin fell 1.5% to $104,623.29
- Ether fell 2.9% to $2,568.33
Bonds
- The yield on 10-year Treasuries was little changed at 4.41%
- Germany’s 10-year yield was little changed at 2.50%
- Britain’s 10-year yield was little changed at 4.65%
Commodities
- West Texas Intermediate crude fell 0.4% to $60.67 a barrel
- Spot gold fell 0.7% to $3,294.60 an ounce
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