S&P 500 Climbs 2% on Economic and Trade Optimism: Markets Wrap

(Bloomberg) — Wall Street kicked off the week with a rally in stocks as consumer confidence rebounded sharply while the US and the European Union sped up trade talks. A global surge in bonds also helped sentiment.

As equities halted a four-day slide, the S&P 500 climbed 2%. Nvidia Corp. paced gains in megacaps ahead of its results. Treasuries got a boost, pushing the 30-year yield below 5% on signs Japan will be ready to calm jittery debt markets. The moves in the US extended after a sale of two-year notes was met with solid bidding metrics. The dollar rose against all developed-market currencies.

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President Donald Trump noted he was encouraged the EU is speeding up negotiations on trade, days after he said the bloc would face 50% tariffs if they fail to reach a deal with the US. Trump extended a deadline for those taxes to take effect to July 9 after a call with European Commission President Ursula von der Leyen.

“The EU tariff reprieve until July 9 is an important step in the overall resolution of this trade situation, as it increases the chances that trade deals will continue to come to fruition, which is the exact messaging that the market is hoping for,” said Robert Ruggirello at Brave Eagle Wealth Management.

Meantime, global bonds rallied as Japanese authorities signaled they are considering adjusting their debt plan after a selloff that drove the nation’s long-term borrowing costs to the highest levels in decades. Worries about the ability of governments to cover massive budget deficits weighed on developed-market debt in recent days.

The Nasdaq 100 climbed 2.4%. The Dow Jones Industrial Average added 1.8%. Nvidia rallied over 3% while Apple Inc. halted its longest selloff in more than three years.

The yield on 10-year Treasuries fell seven basis points to 4.44%. The Bloomberg Dollar Spot Index rose 0.5%. The yen sank 1%.

Corporate Highlights:

• An upbeat earnings report by Nvidia on Wednesday would bode well for a rally in US equities as investors have about $7 trillion parked in cash funds, according to BBVA strategists.
• Salesforce Inc. has agreed to buy Informatica Inc. for about $8 billion, sealing the deal on a software firm that had seen its shares plunge by as much as 59% since the companies’ first talks failed last year.
• The US government is poised to receive a so-called golden share in United States Steel Corp. as a condition for approving Nippon Steel Corp.’s proposed acquisition of the American company.
• Advanced Micro Devices Inc. was upgraded to hold from reduce at HSBC, which cited “the recent re-rating on the back of the Saudi AI deal, as well as tariff de-escalation.”
• The Swiss National Bank sold its entire stake in oil producer Chevron Corp. because it now considers investments in the stock to breach its portfolio guidelines, according to a person familiar with the matter.
• Temu owner PDD Holdings Inc.’s sales and profit missed estimates, underscoring how trade tensions between Beijing and Washington are taking a toll on its business.
• Bank of Nova Scotia missed estimates after setting aside more money than expected for bad credit as tariffs hit its Canadian and Mexican operations.
• The US Supreme Court cleared a major obstacle to Rio Tinto Plc’s construction of North America’s largest copper mine, rejecting an appeal by a Native American group that said the Arizona project will destroy a sacred area.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 2% as of 4 p.m. New York time
• The Nasdaq 100 rose 2.4%
• The Dow Jones Industrial Average rose 1.8%
• The MSCI World Index rose 1.4%
• Bloomberg Magnificent 7 Total Return Index rose 3.2%
• The Russell 2000 Index rose 2.5%

Currencies

• The Bloomberg Dollar Spot Index rose 0.5%
• The euro fell 0.5% to $1.1330
• The British pound fell 0.4% to $1.3505
• The Japanese yen fell 1% to 144.33 per dollar

Cryptocurrencies

• Bitcoin rose 0.3% to $109,916.53
• Ether rose 4.7% to $2,688.59

Bonds

• The yield on 10-year Treasuries declined seven basis points to 4.44%
• Germany’s 10-year yield declined three basis points to 2.53%
• Britain’s 10-year yield declined two basis points to 4.67%

Commodities

• West Texas Intermediate crude fell 0.9% to $61 a barrel
• Spot gold fell 1.2% to $3,304.56 an ounce

–With assistance from Andre Janse van Vuuren.

©2025 Bloomberg L.P.