S&P 500 and Nasdaq post strong gains, but Russell 2000 closes near session lows despite record highs and oil price rebound.
US equities closed higher with the S&P 500 up 1.6% and the Nasdaq surging 3.1%, driven by gains in memory stocks like Micron and Western Digital. The Russell 2000 hit a record but finished near its daily low, signaling weak momentum in small caps despite lower oil prices and consumer resilience.
Oil prices recovered from a low of $79.70 to close at $81.40, erasing early gains and raising concerns about profit-taking in the ‘peace’ trade. Travel stocks like Booking and Expedia rose but failed to hold intraday highs, while airlines surrendered half their opening gains.
Currency markets showed muted reaction, with the euro up just 19 pips and the yen weaker, despite oil’s rebound. The Nasdaq’s outperformance, fueled by speculative trades, contrasted with broader market caution ahead of key central bank decisions.