The S&P 500 index retreated, although it was approaching 6,000 points

Today was full of news, and the market showed mixed dynamics: purchases prevailed in the morning session, and sales in the afternoon.

The S&P 500 index rose to 5,999.70, but failed to overcome the psychologically important milestone of 6,000 points, after which it fell to a low of 5,921.20.

Among the most heavily sagging stocks were Tesla (TSLA -14.3%), Costco (COST -3.9%), Brown–Forman (BF.B -17.9%) and Palantir (PLTR -7.8%).

Key events of the day:

Trump and Xi Jinping had a telephone conversation, during which they agreed to resume the work of the negotiating groups. Market participants reacted positively to this, as the tone of the conversation was conciliatory rather than confrontational.

Elon Musk sharply criticized the “big, beautiful bill,“ calling on lawmakers to “kill the law.“ In response, Donald Trump expressed dissatisfaction with Musk and threatened to end government subsidies and contracts with his companies.

The ECB lowered key interest rates by 25 bps. The expected decision did not have a negative impact on the euro, which strengthened by 0.2% against the dollar.

Labor productivity in the first quarter decreased by 1.5% (forecast: -0.8%), while unit costs increased by 6.6% (forecast: 5.7%). Initial applications for unemployment benefits increased by 8,000 to 247,000 (forecast: 235,000). The total number of benefits paid decreased to 1,904 million, but the four-week moving average reached its highest since November 2021.

The trade deficit in April fell sharply to $61.6 billion (forecast: –$117.2 billion) from a revised value of $138.3 billion in March. This was due to a decrease in imports by $68.4 billion.

The IPO of Circle Internet Group (CRCL) turned out to be extremely successful: at an offering price of $31, the share reached $103.75 and closed at $83.23 (+168.5%). The company specializes in stablecoins.

Dynamics by sector and the market as a whole: Only one sector ended the day in positive territory — communications services (+0.06%). The worst have become: – The consumer discretionary sector (-2.5%) is under pressure due to the collapse of Tesla shares. – Consumer consumer goods (-1.2%) — due to weak results from Costco and Brown–Forman. – Other sectors decreased in the range from 0.1% to 0.6%. The width of the market reflected a general ambiguity: on the NYSE, the number of rising and falling securities was about the same, while on the Nasdaq, the advantage was on the downside — by a ratio of 13 to 9.

Our American FTinvest 11 portfolio also showed mixed dynamics today, but for the most part it showed weakness. The total decrease for the day was 0.64%, the index dropped to the level of 749.02.