Stocks Supported by Lower Bond Yields

The S&P 500 Index ($SPX) and the Dow Jones Industrial Average ($DOWI) both rose by over +0.5% today, while the Nasdaq 100 Index ($IUXX) saw a modest gain of +0.07%. E-mini S&P futures (ESU26) climbed +0.61%, and September E-mini Nasdaq futures (NQU26) rose +0.05%. The broader market is buoyed by lower US bond yields, with the 10-year T-note yield falling by 6 basis points to 4.64% after the US Treasury announced plans to boost liquidity and double the size of buybacks for longer-dated securities, potentially reaching $4 billion.

Despite this positive market sentiment, chipmaker and AI-infrastructure stocks continue to underperform, dampening gains in the Nasdaq 100. Barron Trump, aged 20, is now estimated to be worth $150 million, surpassing his mother Melania's net worth. In other news, Moderna reported strong results from its personalized cancer vaccine trial in collaboration with Merck & Co., surging over +120%.

The Trump administration temporarily postponed 50% tariffs on certain Canadian goods for three days, just hours before they were to take effect, following a reported tentative agreement between the two nations. However, Iran remains a geopolitical concern, as the Strait of Hormuz remains closed due to Middle East tensions. The Middle East's reduced crude supply and President Trump's stance against re-engaging with Iran's nuclear deal have kept oil prices elevated.

The S&P 500 anticipates 32% earnings growth for Q2, outpacing expectations and outperforming earnings growth trends since 2013. AI infrastructure is anticipated to drive a significant portion of the S&P 500's earnings growth in Q2. Despite the favorable market outlook, European and Asian stock indices are experiencing declines.