S&P500

Snapshot of major US stock indexes on Tuesday: Dow +0.3%, NASDAQ +0.6%, S&P 500 +0.6%, S&P 500 at 6,038, range 5,400–6,200.

The stock market rose on Tuesday, supported by persistent hopes for a positive outcome in trade negotiations between US and Chinese officials.

The S&P 500 (+0.6%) and the Nasdaq closed with a 0.6% gain each, while the Dow (+0.3%) continued to lag for the month.

The trading session was generally uneventful, although the market resisted two rounds of selling pressure that briefly pulled the major averages off their highs before rebounding to intraday highs again.

President Trump's acknowledgment that Iran is becoming "much more aggressive" in its nuclear talks with the US triggered a brief dip in mid-morning, but this quickly gave way to renewed gains.

Later in the day, Commerce Secretary Lutnick stated that negotiations with China are going very well and may continue tomorrow.

Ten sectors finished the day higher, led by energy (+1.8%), although crude oil failed to hold its morning gains and ended the session down 0.5% at $64.96 per barrel. Consumer discretionary (+1.2%) followed, supported by the continuation of yesterday's rebound in Tesla (TSLA 326.09, +17.51, +5.7%).

The heavyweight technology sector (+0.5%) kept pace with the broader market, bolstered by strength among semiconductor manufacturers. This helped the PHLX Semiconductor Index (+2.1%) extend its monthly gain to 10.2%, with Intel (INTC 22.11, +1.63, +8.0%) showing relative strength amid growing optimism about its new manufacturing technology.

The industrial sector (-0.4%) underperformed due to profit-taking in defense stocks following recent strength.

Transportation stocks performed well, with the Dow Jones Transportation Average (+1.3%) returning to its May high after Norfolk Southern (NSC 252.92, +2.35, +0.9%) reported a 5% quarter-to-date increase in rail volume.

Treasuries ended the day slightly higher at the longer end and modestly lower overall ahead of tomorrow's release of the May Consumer Price Index (consensus +0.2%). The Treasury auctioned $58 billion in 3-year notes in response to weak demand, while tomorrow's session will include a $39 billion reopening of 10-year notes.

The only report worthy of note in the economic calendar was the NFIB Small Business Optimism Index for May, which grew to 98.8 from 95.8 in April.

The economic calendar on Wednesday: At 7:00 AM ET, the market will get to know the MBA Weekly Mortgage Applications Index (previous -3.9%). At 8:30 AM ET, the CPI data for May will be released (consensus +0.2%; previous +0.2%), along with Core CPI (consensus +0.3%; previous +0.2%). At 2:00 PM ET, the Treasury Budget for May will be available (previous -$258.4 billion).

Year-to-date performance of benchmark stock indices

• S&P 500 +2.7%
• Nasdaq Composite +2.1%
• Dow Jones Industrial Average +0.8%
• S&P Midcap 400 -1.8%
• Russell 2000 -3.4%

Energy market Brent crude is now trading at $67 a barrel.

Conclusion The stock market continues to creep higher, albeit very slowly. All eyes are on today's inflation reports. For now, we expect further growth.