• Wall Street equities extended gains on May 6, as the DJI up by +0.46%, the S&P 500 surged by +1.03%, and the Nasdaq closed up by +1.19%.
• US Stock indexes closed moderately higher on Monday, with the S&P 500 recorded its largest three-day rally gain of the year, and the DJI reaching a 3-1/2 week high. Friday's Fed-friendly US payroll report continued to support stocks, raising expectations for interest rate cuts. Additionally, chip makers and AI hardware stocks showed strength, contributing to the market's positive momentum.
• Q1 earnings have largely exceeded expectations, providing a boost to stocks. Projections now indicate a +6.5% YoY increase, surpassing the pre-earnings estimate of +3.8%. Approximately 81% of reporting S&P 500 companies have outperformed Q1 earnings forecasts, as per Bloomberg Intelligence data.
• The 10-yr UST yields edged down by -1.0 bps to 4.49%, while 2-yr yields rose by +1.0 bps to 4.82%. Supply pressures restrained gains in T-notes as the Treasury scheduled auctions of USD125bn in T-notes and T-bonds for the quarterly May refunding this week.
• In Europe, Industrial producer prices in the Euro Area fell by 7.8% YoY in March 2024, revised from an 8.5% drop in the previous month, slightly below market expectations of a 7.7% decline.
• Global bond yields were mixed on Monday, The German bund yield fell by -2.6 bps to 2.46%, while the 10-yr UK gilts did not trade, with markets in the UK closed for the May Day holiday. The Japanese 10-yr JGB yield remained unchanged at 0.90%.
