US Markets Close Mixed: S&P 500 Pauses Rally Amid Tech Weakness and Inflation Data

Market Performance and Key Drivers

• 📉 Stocks ended mixed as the S&P 500 halted its rally near record highs, primarily due to a slide in big tech stocks.
• 💡 Earlier gains were fueled by benign inflation data, which stoked bets on Federal Reserve rate cuts and led to a drop in bond yields.
• 🌍 Concerns also lingered regarding the details of the U.S.-China trade agreement and events in the Middle East.

Sector and Stock Highlights

• ⚡ The energy sector was the day's biggest winner, with oil prices surging nearly 5%.
• ⚠️ Consumer discretionary and materials sectors were among the weakest performers.
• 🎬 Netflix showed optimism despite potential tariffs, announcing plans to invest over $1 billion in overseas productions.
• 🏦 Goldman Sachs and McKesson were flagged as gainers, with analysts citing resilience and operational momentum.
• 🚀 Oracle shares surged after revenue beat estimates, with optimism expressed for future cloud growth.

Economic Data and Bond Market

• 📊 US core inflation rose less than forecast in May, suggesting companies are absorbing tariff costs.
• 📉 Bond yields moved lower, particularly on shorter maturities, with the two-year yield dropping below 4%.
• 💵 The dollar hit its lowest level since 2023.
• 📈 The Treasury market saw buying across the curve, with a solid $39 billion sale of 10-year debt.

Notable Declines and Outlook

• ✈️ Lockheed Martin shares fell significantly after the Air Force cut its request for F-35 jets.
• 🛒 Chewy experienced its worst daily performance since August 2023 due to falling gross margin and free cash flow.
• 🛍️ Vera Bradley shares dropped sharply, reflecting suspended guidance and CEO departure amid consumer uncertainty.
• 🔮 Analysts are raising estimates, but the market remains in a tight range, with uncertainty about sustained pushes to record highs.