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S&P 500 Up 0.3%, Euro Falls 0.5% Amid Election Concerns

Stocks rebound 0.3%, Euro drops 0.5% post-election; S&P 500 options predict 1.3%-1.4% move by Friday.

By Mackenzie Crow

6/10, 16:02 EDT
NVIDIA Corporation

Key Takeaway

  • S&P 500 rebounded 0.3%, driven by Nvidia's stock split and anticipation of CPI data and Fed meeting.
  • Euro fell 0.5% against the dollar after far-right victories in European elections, impacting French stocks and bonds.
  • US 10-year Treasury yields rose to 4.46%, continuing post-payrolls drop; Bloomberg Dollar Spot Index up for third day.

Market Rebound

Stocks rebounded from overnight lows with the S&P 500 climbing 0.3%. Nvidia Corp. began trading after a 10-for-one stock split, which contributed to the positive sentiment. Despite the lack of a clear catalyst, investors are preparing for potential market movements ahead of the Consumer Price Index (CPI) release and the Federal Reserve meeting on Wednesday. The options market is currently betting that the S&P 500 will move 1.3% to 1.4% in either direction by Friday, based on the price of at-the-money straddles that expire that day.

European Election Impact

The euro slid to its lowest level in a month against the dollar following the European elections on Sunday, where French President Emmanuel Macron and German Chancellor Olaf Scholz were defeated by far-right parties. This outcome has raised concerns about the prospects for greater European integration and a united Europe, which has negatively impacted the euro. European shares also slid, with French stocks leading the selloff. The CAC 40 index dropped 2.1%, with bank stocks being the worst hit. French government bonds declined, outpacing losses in their German counterparts. The euro fell 0.5% against the greenback, and the Bloomberg Dollar Spot Index rose 0.2%.

Bond Market Movements

Bonds fell on both sides of the Atlantic, with 10-year Treasury yields climbing three basis points to about 4.46%. Treasuries dipped, adding to Friday’s post-payrolls drop, with US 10-year yields rising 1 basis point to 4.45%. French bond futures slid after President Macron called a snap legislative ballot, while Bund futures remained relatively unchanged. The Bloomberg Dollar Spot Index continued its rise for the third consecutive day.