U.S. Equity Markets Decline as S&P 500 Ends Six-Day Rally

U.S. Equity Markets Decline as S&P 500 Ends Six-Day Rally

U.S. stock markets closed lower on Tuesday, snapping a six-session winning streak for the S&P 500, as momentum from easing U.S.-China trade tensions began to fade.

• S&P 500: ↓ 0.4% to 5,940.5

• Nasdaq Composite: ↓ 0.4% to 19,142.7

• Dow Jones Industrial Average: ↓ 0.3% to 42,677.2

The energy sector led the decline, with most sectors finishing in negative territory.

Trade War Pause Fails to Sustain Rally

The drop followed news that Washington and Beijing agreed to pause most of their mutual tariffs for 90 days. While the ceasefire initially lifted market sentiment, it wasn’t enough to sustain the recent rally. The U.S. and China have been embroiled in a trade war since former President Donald Trump announced new sweeping tariffs last month.

Bond Market Update

U.S. Treasury yields showed mixed movement:

• 2-Year Yield: Flat at 3.98%

• 10-Year Yield: Rose 3.3 basis points to 4.49%

Company Highlights

• Airbnb (ABNB): ↓ 3.3%
  The Spanish government ordered the removal of over 65,000 listings, citing violations of vacation rental laws. Airbnb plans to contest the ruling.

• Dollar Tree (DLTR): ↑ 4.6%
  Gained after Deutsche Bank raised its price target from $82 to $90, making it the second-best performer in the S&P 500.

• Pfizer (PFE): ↑ 2.3%
  Announced a licensing deal worth up to $6.05 billion for global rights (excluding China) to 3SBio’s experimental cancer treatment.

• Amer Sports: ↑ 19%
  Surged after the company raised its full-year outlook, noting strong positioning to handle tariff-related challenges.

• Fair Isaac (FICO): ↓ 8.1%
  Dropped sharply after FHFA director Bill Pulte criticized FICO’s pricing, pushing for cheaper credit scoringalternatives.

• Moderna (MRNA): ↑ 6.1%
  Jumped after the FDA issued new guidance regarding COVID-19 vaccine boosters.

• Levi Strauss (LEVI): ↑ 1.5%
  Rose following its decision to sell Dockers to Authentic Brands Group, in a move to focus on core labels like Beyond Yoga.

Commodities

• WTI Crude Oil: ↓ 0.1% to $62.62/barrel
  D.A. Davidson noted markets are reassessing U.S.-Iran nuclear negotiations.

• Gold: ↑ 2% to $3,296.90/oz

• Silver: ↑ 2.4% to $33.29/oz