World Wide

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

S&P 500 up 0.3%, Euro drops 0.5% after French election results, Nvidia begins trading post 10-for-1 split.

By Mackenzie Crow

6/10, 16:04 EDT
NVIDIA Corporation

Key Takeaway

  • S&P 500 rebounded 0.3% ahead of CPI report and Fed meeting, with Nvidia's 10-for-one stock split boosting sentiment.
  • European stocks, especially French equities, declined sharply; CAC 40 fell 2.1% after Macron called for a legislative vote.
  • Euro weakened by 0.5% against the dollar post-election; Bloomberg Dollar Spot Index rose for the third consecutive day.

Stock Market Rebound

Stocks experienced a rebound from overnight lows, with the S&P 500 climbing 0.3%. This recovery occurred despite the absence of a clear catalyst, as investors await the upcoming Consumer Price Index (CPI) report and the Federal Reserve meeting scheduled for Wednesday. Nvidia Corp. also began trading after implementing a 10-for-one stock split, which could have contributed to the positive sentiment in the market.

European Equities Decline

European stocks faced a significant selloff, led by French equities, following the European Parliament election results. The CAC 40 index dropped by 2.1%, with bank stocks being the most affected. This decline was triggered by French President Emmanuel Macron's decision to call a legislative vote after a substantial defeat in the elections. The Euro Stoxx 50 futures also softened by about 0.4%, reflecting the broader market's reaction to the political developments in France.

Euro Weakens Against Dollar

The euro fell to its lowest level against the dollar in approximately a month, driven by the weekend's parliamentary elections. The euro dropped 0.5% against the greenback, while the Bloomberg Dollar Spot Index rose for the third consecutive day. The Treasury 10-year yield added a basis point, nearing 4.45%. French bond futures slid following President Macron's call for a snap legislative ballot, although Bund futures remained relatively unchanged.