Market Updates: Dow Closes Higher, Small-Cap Stocks Lag, and More

The Dow Jones Industrial Average closed higher on Tuesday as investors sought to recover from a losing start to June. The 30-stock Dow added 140.26 points, or 0.36%, to close at 38,711.29. The S&P 500 and Nasdaq Composite also saw gains, ticking up 0.15% and 0.17%, respectively.

Small-cap stocks, however, took a hit on Tuesday, with the Russell 2000 dropping more than 1% compared to the S&P 500’s 0.2% slip.

Investors should take note of the market’s response to falling Treasury yields, according to Rosenberg Research founder David Rosenberg. He highlighted concerns that the stock market may be signaling worries about the economic slowdown and its impact on earnings outlook.

State Street Global Advisors noted the increasing popularity of active ETFs and bank loan funds, with bond ETFs seeing significant inflows in May.

Deutsche Bank’s Binky Chadha expressed optimism about the market’s ability to rally without the need for rate cuts, maintaining a constructive view on equities.

Bank of America reported the biggest net sale of U.S. equities by clients since July 2023, with tech stocks taking a significant hit.

In the S&P 500, 10 stocks reached new 52-week highs during Tuesday’s trading session, with seven of them hitting all-time highs.

Job openings declined in April, but ZipRecruiter’s chief economist Julia Pollak reassured that the drop may be a statistical blip rather than a warning sign for the labor market.

Indian stocks plunged as Prime Minister Narendra Modi declared victory in the country’s election, with his party, the BJP, looking set to lose its majority.

Stocks making significant moves midday included Bath & Body Works, Carnival, and GameStop, with each experiencing notable price fluctuations.

Bath & Body Works faced its worst session since 2021 on weak guidance, despite beating first-quarter earnings estimates.

Intel rose after unveiling new AI chips to compete with rivals Nvidia and AMD.

Alphabet cut at least 100 jobs in its cloud unit, leading to a premarket decline in its shares.

European markets opened lower on Tuesday, with all major bourses and sectors in the red.

Overall, the market saw a mix of gains and losses, reflecting the ongoing volatility and uncertainty in the financial landscape.