Wall Street charged higher Tuesday, with U.S. equities posting broad-based gains by midday as investors embraced a risk-on mood, spurred by easing Treasury yields and renewed optimism surrounding trade talks between the U.S. and the European Union.
The bond market drove a major sentiment shift. U.S. 30-year Treasury yields sank 10 basis points to 4.93%, falling below the psychologically key 5% threshold for the first time in days.
The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) rallied 1.5%, eyeing the strongest daily gain since late February 2025.
This move follows a surprise development in Japan, where the Ministry of Finance announced a reduction in the issuance of longer-dated government bonds. That decision triggered an 18-basis-point drop in Japan’s 30-year yield, creating a ripple effect that eased pressure across global fixed-income markets.
The sharp decline in yields helped equities rally across the board. The S&P 500 rose 1.9%, extending May’s gains to more than 6%. The benchmark is now tracking its strongest monthly performance since November 2023.
Technology and small-cap stocks outpaced broader benchmarks, adding momentum to the rally. Every sector in the S&P 500 traded higher on the day.
Among the mega-caps, Tesla Inc. (NASDAQ:TSLA) stood out with a 6.4% gain, reclaiming price levels last seen in mid-February.
As equity and bond sentiment improved, traditional safe-haven assets lost appeal. Gold prices fell 1%, slipping below $3,300 per ounce. The move reflects investors rotating out of defensive plays amid increasing appetite for risk.
In energy markets, crude oil dropped 1.5% to $60.50 a barrel, while copper prices slid 2.1%, signaling some caution in industrial demand despite the bullish tone in equities.
Bitcoin (CRYPTO: BTC) traded near $110,000, remaining close to its all-time highs.
Tuesday’s Performance In Major U.S/ Indices, ETFs
| Major Indices | Price | 1-day chg. % |
| Nasdaq 100 | 21,406.38 | 2.3% |
| Russell 2000 | 2,085.63 | 2.2% |
| S&P 500 | 5,913.36 | 1.9% |
| Dow Jones | 42,271.70 | 1.6% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) rallied 1.9% to $590.07.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 1.6% to $422.83.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) soared 2.3% to $520.83.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 2.3% to $207.26.
- The Consumer Discretionary Select Sector SPDR Fund (NYSE: