Daily Market Brief: Equities Extend Gains, Trade Hopes Lift Commodities, Eyes on Inflation Data

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Index Update: Investors sought more clarity on U.S.–China trade talks, with Commerce Secretary Howard Lutnick expressing optimism about ongoing negotiations. U.S. markets closed higher for a third consecutive session, with the S&P 500 up 0.55%, the Nasdaq rising 0.63%, and the Dow gaining 0.25%. Gains were broad, led by energy, consumer discretionary, and healthcare sectors, while tech stocks outperformed on strong performances from Tesla, Meta, and Alphabet. Markets now await earnings results from Chewy and Oracle.

Market Movers: On Tuesday, the top gainers were Evogene Ltd (+100.00%), followed by Gelteq Limited (+73.53%). On the contrary XCF Global, Inc (-34.29%) and Fractyl Health, Inc (- 25.00%) declined the most the same day.

Commodities Update: Crude oil prices climbed to multi-week highs, with WTI surpassing $66 and Brent rising above $67.5 per barrel, driven by optimism surrounding the US-China trade deal and escalating tensions between the US and Iran. President Trump signaled a near-final agreement with China while expressing skepticism about reaching a nuclear deal with Iran, prompting threats from Tehran. On the supply front, OPEC+ plans to increase output in July, but a decline in U.S. crude inventories indicates continued market tightness, with traders awaiting official EIA data for confirmation. Gold prices rose toward $3,340 per ounce as market sentiment was weighed by lingering uncertainty over the US-China trade pact and the upcoming U.S. inflation report. While both countries reached a preliminary trade framework, implementation depends on leader approval. Meanwhile, a court ruling upheld broad U.S. tariffs, and the World Bank cut its global growth outlook for 2025, citing trade tensions and broader economic risks. These developments have fueled safe-haven demand for gold ahead of key economic data.

Macro Update: The average 30-year fixed mortgage rate in the U.S. rose slightly to 6.93% in the week ending June 6, 2025, according to the Mortgage Bankers Association. The uptick followed fluctuations in Treasury yields, offering some borrowers new opportunities. Rates remain below the recent four-month high of 6.98% and slightly lower than the 7.02% seen a year ago.

Futures Update: U.S. stock index futures edged lower as investors reacted mildly to a new U.S.-China trade framework and looked ahead to key inflation data. This followed a positive session on Wall Street, where major indexes posted gains, driven in part by strength in the tech sector. The Nasdaq Composite and S&P 500 both advanced around 0.6%, while the Dow Jones Industrial Average also ended higher, marking a third consecutive day of gains and bringing the S&P 500 within 2% of its recent high.

U.S. stocks experienced modest gains on Tuesday as traders awaited the outcome of ongoing trade negotiations between China and the US in London. The S&P 500 rose by 32.91 points, or 0.55%, closing at 6,038.80. Technical indicators indicate that the index found support at key levels and successfully regained the 6,000 mark, suggesting potential short-term upward movement. As long as the price remains above the 6000 level, it may continue to trend higher. Furthermore, the index is trading above its major moving averages, reinforcing a positive outlook, while the 14-period RSI stays in bullish territory, supporting an optimistic sentiment. Key support is around 5,888, with resistance expected near 6,077.