Stock Market Update

[BRIEFING.COM] The major indices are just off their best levels of the day, which are pretty good for the Russell 2000 (+1.7%). Small-cap stocks comprise the best pocket of the market today in what some are describing as a catch-up trade.

Entering today, the Russell 2000 was down 7.3% year-to-date versus a 0.9% gain for the S&P 500. Regional banks and energy stocks have underpinned the small-cap class's outperformance, which was bolstered by an April JOLTS - Job Openings Report this morning that showed a pickup in job openings (a good sign for the labor market and, arguably, the growth outlook).

The cash session for Treasuries has just ended. The 10-yr note yield was unchanged for the day at 4.46%, yet that standing belies the selling that took place after the 10-yr note yield dipped below 4.41% in the overnight trade that featured the weakest Caixin Manufacturing PMI reading for May (48.3) out of China since 2022 and a well-received 10-yr Japanese government bond sale.