After delivering its strongest monthly performance since November 2023, Wall Street entered June on a cautious note, with mounting geopolitical tensions and new trade tariffs clouding investor appetite for risk assets.
European Commission President Ursula von der Leyen had previously extended an olive branch to the U.S., offering zero-for-zero tariffs on industrial goods.
According to TheFly, Wells Fargo analyst Mike Mayo stated that Citi is on the cusp of transitioning from value destruction to value creation, noting that the stock should rise above its tangible book value.
The S&P Global Purchasing Managers Index (PMI) rose slightly to 47.7 in May from 47.5 in April, but remained below the 50 mark, which signifies another month of contraction.
Fundstrat's Tom Lee has been betting on a "new bull market" following the spike in the volatility gauge in April, while another analyst believes that it is the "TACO" trade that is fueling the "run it hot" optimism in the market.
The indices continue to quote close to their next resistance.
While headline indices may show only minor daily fluctuations, the underlying breadth data paints a more fragile picture.
The truce signed between the two countries in mid-May provided for scaling back the levies on each other’s goods to 10% for 90 days to allow time to negotiate a final agreement.
The past week saw developments in business & politics, from Trump's tariffs being temporarily preserved to Paramount Global's potential settlement with him.
