LIVE MARKETS-US stocks step back, but defense shares attempt to continue to gear up

Reuters
05 Jun
LIVE MARKETS-US stocks step back, but defense shares attempt to continue to gear up

Main US indexes down modestly

Staples weakest S&P sector; Comm Svcs sole gainer

Euro STOXX 600 index off ~0.2%; ECB cuts 25 bps

Dollar down; bitcoin slips; gold ~flat; crude up ~1.5%

US 10-Year Treasury yield edges down to ~4.35%

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US STOCKS STEP BACK, BUT DEFENSE SHARES ATTEMPT TO CONTINUE TO GEAR UP

Wall Street's main indexes are modestly red on Thursday as investors look ahead to the monthly jobs report on Friday to gauge the impact of President Donald Trump's trade policies on the labor market and the Federal Reserve's interest rate trajectory.

Earlier, U.S. stock futures did get a boost after Chinese President Xi Jinping on Thursday held talks with President Trump by phone, the official Xinhua news agency reported. That said, the move failed to extend much into the regular session.

Nearly all S&P 500 index .SPX sectors are lower with staples .SPLRCS, off about 1%, taking the biggest hit. Communication services .SPLRCL, up just 0.3%, is the sole gainer.

The NYSE FANG index .NYFANG and chips .SOX are slightly positive. NYFANG is on track for a fresh record close.

Gold stocks .HUI, up more than 2%, are strongly outperforming.

Of note, defense stocks have been on a run. The iShares U.S. aerospace & defense ETF ITA.Z is attempting continue its push into record high territory and rise for a ninth-straight day. This ETF last rose nine days in a row in November 2019.

Here is a snapshot of where markets stood just shortly after 10:00 a.m. ET:

(Terence Gabriel)

*****

EARLIER ON LIVE MARKETS:

WITH TECH ON A TEAR, NASDAQ TARGETS ITS HIGHS CLICK HERE

ISRAELI SHEKEL MAY NOT BE THE POSTER BOY FOR DISINFLATION STORY CLICK HERE

RETAIL INVESTORS TAKE ON RISKIER BETS DESPITE UNCERTAINTIES CLICK HERE

SPECULATORS STAY PUT ON WEAKENING CONSUMER CONFIDENCE - HAZELTREE CLICK HERE

EUROZONE BANK VALUATION REVIVAL TO CONTINUE - UNICREDIT CLICK HERE

QUIET START, TRAVEL SECTOR TOP FALLER CLICK HERE

BEFORE THE BELL: AWAITING THE ECB, AND NATO MEETING CLICK HERE

SWITCH 2 DEBUTS BUT NO FUN-AND-GAMES IN TRADE CLICK HERE

earlytrade06052025 https://tmsnrt.rs/43JDhy6

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)

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