U.S. Markets Steady as Optimism Rises, Trade Talks and Inflation Data in Focus

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Index Update: U.S. stocks saw a cautious start to the week, with the S&P 500 and Nasdaq posting modest gains while the Dow closed flat. Apple shares dipped after a subdued WWDC event, while Qualcomm rose on its $2.4 billion acquisition of Alphawave. Investors are now eyeing upcoming small business sentiment data, key inflation reports, and earnings from GameStop and J.M. Smucker Co.

Market Movers: On Monday, the top gainers were Ohmyhome Limited (+299.34%), followed by Know Labs, Inc (+94.87%). On the contrary ReShape Lifesciences, Inc (-37.80%) and Children's Place, Inc (- 32.22%) declined the most the same day.

Commodities Update: Crude oil prices climbed, with WTI reaching over $65 per barrel and Brent surpassing $67, as traders awaited progress in US-China trade talks that could alleviate tariff-related demand concerns. Positive remarks from US officials about the ongoing discussions and persistent geopolitical tensions, including the unresolved Russia-Ukraine conflict and uncertainty surrounding a US-Iran nuclear deal, further supported prices. However, Saudi Arabia's call for OPEC+ to increase output raised potential oversupply worries. Gold prices remained steady around $3,320 per ounce, as investors monitored the trade negotiations and anticipated upcoming US inflation data for clues on Federal Reserve policy. In contrast, silver prices pulled back to $36.50 per ounce after a recent surge, as easing trade tensions reduced safe-haven demand. Despite this dip, strong industrial demand, particularly from the solar sector, continues to provide underlying support for silver.

Macro Update: The NFIB Small Business Optimism Index rose to 98.8 in May 2025, its highest in three months, surpassing expectations. Despite the improvement, uncertainty remains high. More owners reported positive expectations for business conditions and sales, with 25% expecting better conditions—a 10-point increase from April. Taxes were cited as the top concern by 18% of owners, the highest since December 2020, while 14% continued to cite inflation as their main issue.

Futures Update: U.S. stock index futures edged lower as investors remained cautious ahead of further developments in ongoing trade talks between the U.S. and China in London. This followed a quiet session on Wall Street, where the S&P 500 posted a modest gain for the second consecutive day, supported by strength in major tech stocks.

Following a strong upward surge on last Friday, stocks exhibited a relatively muted performance during Monday’s trading session. The S&P 500 edged up by 5.52 points, or 0.09%, closing at 6,005.89. Technical indicators suggest that the index found support at key levels and managed to reclaim the 6,000 mark, hinting at potential short-term gains. Additionally, the price is trading above its major moving averages, reinforcing a positive outlook, while the 14-period RSI remains in bullish territory, further supporting an optimistic sentiment. Support levels are approximately around 5,888, with resistance expected near 6,066.