Overview
- Major U.S. indexes were mixed as the S&P 500 finished flat, the Dow rose 0.6% and the Nasdaq fell 0.4%, while the 10-year Treasury yield ticked up near 4.18%.
- Aerospace and defense shares jumped to all-time highs in the U.S. and Europe, with gains for Lockheed Martin, Northrop Grumman, L3Harris and Kratos after the president proposed a 2027 military budget of $1.5 trillion.
- An executive order directed the Pentagon to include clauses in future contracts that restrict buybacks during periods of underperformance on U.S. government work.
- Oil prices rebounded to roughly $57 for WTI and $62 for Brent as investors tracked Venezuela-related developments, including U.S. statements about controlling the country’s oil sales and the seizure of two linked tankers.
- Initial jobless claims rose to 208,000 ahead of Friday’s nonfarm payrolls report, and sector rotation continued with technology and chip stocks weighing on the Nasdaq.