S&P500

Snapshot of major US stock indices

• Dow Jones: +0.5%
• NASDAQ: +0.2%
• S&P 500: +0.3%, S&P 500 closed at 6,283, trading in a range of 5,900 to 6400

The stock market rebounded after an initial drop, with the S&P 500 and Nasdaq Composite hitting new all-time highs during Thursday's session.

Despite early selling pressure following yesterday's bullish trend, the market showed a strong bullish sentiment. This was reflected in the outperformance of small- and mid-cap stocks, cyclical sectors, and gains in nine out of eleven S&P 500 sectors. Small and mid-cap stocks, in particular, led the recovery from the session's lows.

This trend held steady throughout the day. The Russell 2000 and S&P Mid Cap 400 both closed up by 0.5%. The equal-weighted S&P 500 rose by 0.6%, while the market-cap-weighted S&P 500 advanced by 0.3%.

The Invesco S&P High Beta ETF rose by 1.3%, showing strong risk-on sentiment in the market. While large-cap stocks started the day on a weaker note, they eventually held their ground and remained among the session's leaders.

The Vanguard Mega Cap Growth ETF finished flat. The relative weakness in large-cap stocks contributed to the decline in the Communication Services sector (-0.5%) and Information Technology (-0.1%), both of which closed in negative territory.

The Consumer Discretionary sector led all others, up 1.0%, driven by strength in travel-related names. Delta Air Lines (DAL 56.79, +6.09, +12.0%) beat quarterly estimates and reaffirmed its full-year guidance — a sharp contrast to other airlines that paused forecasts after tariff announcements earlier in April.

Additionally, Tesla (TSLA 309.87, +13.99, +4.7%) surged after reports that the company expects approval to launch its Robotaxi service in San Francisco, with expansion planned in Arizona, according to Bloomberg. McDonald's (MCD 298.39, +5.37, +1.83%) also supported the sector after receiving an analyst upgrade from Neutral to Buy.

Treasury yields finished near unchanged levels. A modest sell-off occurred in the morning after a positive initial jobless claims report, which likely diminished expectations of a July rate cut. However, yields declined ahead of a thirty-year Treasury auction worth twenty-two billion dollars at 1:00 PM ET, and continued to fall afterward.

The auction drew strong demand and capped off a week in which markets absorbed one hundred nineteen billion dollars of new issuance with little issue. This boosted market confidence, even amid concerns over inflation related to new tariffs.

Year-to-date performance:

• Nasdaq: +6.8%
• S&P 500: +6.8%
• Dow Jones: +5.0%
• S&P 400 (Mid Caps): +2.5%
• Russell 2000: +1.5%

Economic calendar

Initial jobless claims declined by 5,000 in the week ending July 5, to 227,000 (consensus: 245,000).

Continuing claims for the week ending June 28 rose by 10,000 to 1.965 million, the highest level since November 13, 2021.

Key takeaway: Employers remain reluctant to lay off workers, but it's becoming harder for the unemployed to find new jobs. This reflects a cooling labor market — though not outright weakness.

Energy market

Brent crude oil is now trading at $68.90 a barrel. Oil attempted to stay above seventy dollars for two days but fell more than one dollar, slipping below that level again.

Conclusion The US stock market is eager to hold its gains. We're still watching for a healthy correction, the one that would offer new opportunities to resume buying.