Wall Street charged higher Tuesday, with U.S. equities posting broad-based gains by midday as investors embraced a risk-on mood, spurred by easing Treasury yields and renewed optimism surrounding trade talks between the U.S. and the European Union.
The bond market drove a major sentiment shift. U.S. 30-year Treasury yields sank 10 basis points to 4.93%, falling below the psychologically key 5% threshold for the first time in days.
The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) rallied 1.5%, eyeing the strongest daily gain since late February 2025.
This move follows a surprise development in Japan, where the Ministry of Finance announced a reduction in the issuance of longer-dated government bonds. That decision triggered an 18-basis-point drop in Japan's 30-year yield, creating a ripple effect that eased pressure across global fixed-income markets.
The sharp decline in yields helped equities rally across the board. The S&P 500 rose 1.9%, extending May’s gains to more than 6%. The benchmark is now tracking its strongest monthly performance since November 2023.
Technology and small-cap stocks outpaced broader benchmarks, adding momentum to the rally. Every sector in the S&P 500 traded higher on the day.
Among the mega-caps, Tesla Inc. (NASDAQ:TSLA) stood out with a 6.4% gain, reclaiming price levels last seen in mid-February.
As equity and bond sentiment improved, traditional safe-haven assets lost appeal. Gold prices fell 1%, slipping below $3,300 per ounce. The move reflects investors rotating out of defensive plays amid increasing appetite for risk.
In energy markets, crude oil dropped 1.5% to $60.50 a barrel, while copper prices slid 2.1%, signaling some caution in industrial demand despite the bullish tone in equities.
Bitcoin (CRYPTO: BTC) traded near $110,000, remaining close to its all-time highs.
Tuesday’s Performance In Major U.S/ Indices, ETFs
| Major Indices | Price | 1-day chg. % |
| Nasdaq 100 | 21,406.38 | 2.3% |
| Russell 2000 | 2,085.63 | 2.2% |
| S&P 500 | 5,913.36 | 1.9% |
| Dow Jones | 42,271.70 | 1.6% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) rallied 1.9% to $590.07.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 1.6% to $422.83.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) soared 2.3% to $520.83.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 2.3% to $207.26.
- The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperformed, up 2.8%; the Consumer Staples Select Sector SPDR Fund (NYSE:XLP) lagged, up 0.5%.
Tuesday’s Stock Movers
- Hologic Inc. (NASDAQ:HOLX) jumped 12.7%, paring earlier bigger gains, after the company rejected a non-binding takeover bid worth up to $16.7 billion from private equity firms TPG Inc. (NASDAQ:TPG) and Blackstone Inc. (NYSE:BX).
- PDD Holdings Inc. (NASDAQ:PDD) tumbled 15% after reporting weaker-than-expected quarterly earnings.
- The S&P 500‘s top performers during Tuesday’s New York session included Hologic Inc., up 14.93%; Tesla Inc., which gained 6.87%; Deckers Outdoor Corp. (NYSE:DECK), rising 6.82%; Royal Caribbean Cruises Ltd. (NYSE:RCL), up 6.66% and Warner Bros. Discovery Inc. (NASDAQ:WBD), climbing 6.61%.
- The biggest laggards included Fair Isaac Corp. (NYSE:FICO), which sank 9.63%; AutoZone Inc. (NYSE:AZO) down 4.55%; VeriSign Inc. (NASDAQ:VRSN) losing 4.28%; Kroger Co. (NYSE:KR) slipping 1.70% and Copart Inc. (NASDAQ:CPRT) falling 1.68%.
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Stocks slated to report earnings after the close include OKTA Inc. (NASDAQ:OKTA) and Heico Corp. (NYSE:HEI).
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