Major stock indexes showed modest gains on Tuesday as investor sentiment remained cautiously optimistic amid ongoing U.S.-China trade discussions. Tesla saw an increase in its stock price as CEO Elon Musk and former President Donald Trump seemed to be mending fences after a previous public dispute. However, J.M. Smucker, the maker of Twinkies, faced a steep decline in the market.
The Dow Jones Industrial Average rose by 0.3%, maintaining support at its 200-day moving average. The S&P 500 increased by 0.4%, remaining above the critical 6,000 mark, while the Nasdaq composite matched this gain, reflecting positive market momentum.
The small-cap Russell 2000 Index stood out with a 0.8% gain, marking its third consecutive day of increases and moving closer to its 200-day trend line. Trading volume was notably higher on the Nasdaq compared to the New York Stock Exchange, with advancing stocks outnumbering declining stocks by a ratio of 2-to-1 on the NYSE and about 5-to-3 on Nasdaq.
In bond markets, the 10-year Treasury yield dipped to 4.47%, while oil prices edged closer to $65.40 per barrel. Bitcoin continued its upward trajectory, surpassing $108,900.
Among exchange-traded funds, the Invesco QQQ Trust and the SPDR S&P 500 ETF both gained 0.4%. However, the Innovator IBD 50 ETF saw a drop of over 2%.
In economic news, the National Federation of Independent Business reported an increase in the Small Business Optimism Index, rising to 98.8 in May, exceeding forecasts and the previous month’s figure.
### Market Movers
J.M. Smucker’s stock plummeted by more than 15% after the company missed earnings expectations for the fiscal fourth quarter, experiencing a 13% drop in profit and a 3% decline in sales. The disappointing forecast for fiscal 2026 profit guidance, compounded by rising coffee costs and lackluster demand for its Hostess snack brand, sent shares further below key moving averages and marked a 52-week low.
Newly listed company Circle Internet Group saw its shares decline over 7% after an initial week of trading gains.
Recent market darlings faced sell-offs as Sezzle, a “buy now, pay later” service provider, tumbled over 11% after initiating legal action against Shopify for antitrust issues. Following a significant rally, Sezzle is now testing support levels. In contrast, Shopify’s stock rose by 0.8%.
CoreWeave, another stock that recently performed well, retraced approximately 5% after a significant Monday rally. Likewise, Rubrik fell nearly 5%, moving away from its recent high after announcing a $1 billion convertible notes offering.
eToro shares fell by more than 8% after missing last year’s earnings despite reporting Q1 earnings that outperformed expectations. The stock had previously seen a breakout but fell back below its initial buy point.
In contrast, Casey’s General Stores soared over 14% following strong fiscal fourth-quarter earnings that surpassed expectations, while Calavo Growers experienced a steep decline of over 17% due to disappointing financial forecasts.
### What’s Next?
As trade negotiations between the U.S. and China progress, Secretary of Commerce Howard Lutnick has expressed optimism about the talks. Key corporate earnings figures are anticipated, which will further shape market sentiment.
On the stock front, Amazon successfully broke past a key resistance point, solidifying its position as a formidable player in retail. Similarly, Toast has rebounded after hitting a crucial support level.
Investors should remain vigilant for market volatility, focusing on identifying stocks with reasonable average true ranges, while diversifying their portfolios to avoid overexposure in high-risk sectors.
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