Tech stocks drove the S&P 500 higher for a third day, pushing the benchmark index 20 per cent above an October low, on track for a bull market.

The S&P 500 gained 0.3 per cent, with Apple Inc. up 1.96 per cent in anticipation for a mixed-reality headset launch. 

Energy stocks, including oil majors Chevron Corp. and Exxon Mobil Corp., pared an earlier advance on an oil supply cut from Saudia Arbia. 

Meanwhile, Treasury yields drifted as a gauge of US services offered a less upbeat assessment of the U.S. economy.  

The Institute for Supply Management’s overall gauge of services unexpectedly fell to the lowest level of the year, conflicting with more optimistic readings.

There’s increasing speculation the Federal Reserve will keep interest rates steady in June, and its options open for later hikes. However, mixed reports are muddying expectations.

“The weakness in the ISM surveys stands in contrast to the recent improvement in the S&P Global PMIs — which are currently consistent with positive GDP growth of about 2 per cent annualised — and is clearly painting a dramatically different picture to Mays employment report,” said Andrew Hunter, deputy chief US economist at Capital Economics. 

Taken with regional Fed activity surveys and other hard data, it could mean GDP growth will be barely above zero in the second quarter, Hunter said.

Saira Malik, chief investment officer at Nuveen, said she foresees a mild U.S. recession, but sometime in 2024 as the “growth-dampening effects of tight monetary policy work their way through the economy.”

“With high inflation likely to persist, we think investors would be well-served by allocating to real assets that can provide meaningful inflation protection,” she said, pointing to farmland. 

Elsewhere, equities in Europe fell and indexes in Asia were mostly higher. The Nikkei 225 rose 2.2 per cent to the highest since 1990 as investors bet a weak yen will boost corporate profits. Gold gained. The dollar erased gains against peers. And Bitcoin fell.

Key events this week:

  • Rate decisions in Australia, Poland, Tuesday
  • China forex reserves, trade, Wednesday
  • US trade, consumer credit, Wednesday
  • Canada rate decision, Wednesday
  • EIA crude oil inventory data, Wednesday
  • Eurozone GDP, Thursday
  • Rate decisions in India, Peru, Thursday
  • Japan GDP, Thursday
  • US wholesale inventories, initial jobless claims, Thursday
  • China PPI, CPI, Friday

Some of the main moves in markets:


  • The S&P 500 rose 0.3 per cent as of 12:20 p.m. New York time
  • The Nasdaq 100 rose 0.7 per cent
  • The Dow Jones Industrial Average fell 0.1 per cent
  • The MSCI World index rose 1.6 per cent


  • The Bloomberg Dollar Spot Index was little changed
  • The euro was little changed at $1.0716
  • The British pound fell 0.1 per cent to $1.2438
  • The Japanese yen rose 0.2 per cent to 139.61 per dollar


  • Bitcoin fell 5.2 per cent to $25,838.34
  • Ether fell 4.9 per cent to $1,811.63


  • The yield on 10-year Treasuries was little changed at 3.68 per cent
  • Germany’s 10-year yield advanced seven basis points to 2.38 per cent
  • Britain’s 10-year yield advanced five basis points to 4.21 per cent


  • West Texas Intermediate crude rose 1.4 per cent to $72.76 a barrel
  • Gold futures rose 0.3 per cent to $1,975.70 an ounce

This story was produced with the assistance of Bloomberg Automation.