Wall Street Rockets As Bond Yields Drop, Tesla Hits 3-Month Highs: What’s Driving Markets Tuesday? – AutoZone (NYSE:AZO)

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 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. 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 BTC/USD traded near $110,000, remaining close to its all-time highs.

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY rallied 1.9% to $590.07.
• The SPDR Dow Jones Industrial Average DIA rose 1.6% to $422.83.
• The tech-heavy Invesco QQQ Trust Series QQQ soared 2.3% to $520.83.
• The iShares Russell 2000 ETF IWM rose 2.3% to $207.26.
• The Consumer Discretionary Select Sector SPDR Fund XLY outperformed, up 2.8%; the Consumer Staples Select Sector SPDR Fund XLP lagged, up 0.5%.

• Hologic Inc. HOLX jumped 12.7%, paring earlier bigger gains, after the company rejected a non-binding takeover bid worth up to $16.7 billion from private equity firms TPG Inc. TPG and Blackstone Inc. BX.
• PDD Holdings Inc. PDD tumbled 15% after reporting weaker-than-expected quarterly earnings.
• The S&P 500‘s top performers during Tuesday’s New York session included Hologic Inc., up 14.93%; Tesla Inc., which gained 6.87%; Deckers Outdoor Corp. DECK, rising 6.82%; Royal Caribbean Cruises Ltd. RCL, up 6.66% and Warner Bros. Discovery Inc. WBD, climbing 6.61%.
• The biggest laggards included Fair Isaac Corp. FICO, which sank 9.63%; AutoZone Inc. AZO down 4.55%; VeriSign Inc. VRSN losing 4.28%; Kroger Co. KR slipping 1.70% and Copart Inc. CPRT falling 1.68%.
• Stocks slated to report earnings after the close include OKTA Inc. OKTA and Heico Corp. HEI.

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