Opening Comment — Wednesday, May 06, 2026
DJIA: 49,298.25, up 356.35
S&P 500: 7,259.22, up 58.47
NASDAQ: 25,326.13, up 258.33
Stocks higher following war resolution hopes
Stock futures are higher Wednesday morning following market optimism regarding negotiations to end the U.S.-Iran war. Meanwhile, investors are looking forward to today’s April ADP Employment Report. As of 7:18 AM ET, the Dow is rising 1.2%, while the S&P 500 is up 1.0%. The Nasdaq 100 is increasing 1.7% relative to fair value on the GLOBEX.
U.S. equities were higher on Tuesday as the Institute for Supply Management (ISM) services purchasing managers’ index (PMI) for April decreased to 53.6, while the prices-paid component remained stable at 70.7, versus expectations of an increase. Meanwhile, the March Job Openings and Labor Turnover Survey (JOLTS) showed job openings falling to 6.87 million from an upwardly revised 6.92 million in February. The Dow was up 0.7%, while the tech-heavy Nasdaq Composite rose 1.0% and hit a new record closing level of 25326.13. The S&P 500 increased 0.8% and set a new record closing level of 7259.22, with all 11 sectors finishing in positive territory. The Materials sector was the top performer, rising 1.7%, while the Financials sector was the bottom performer, ending the day little changed.
On the data front, the Mortgage Banker Association’s gauge of mortgage applications decreased by 4.4% for the week ending May 1 versus the prior week’s decrease of 1.6%. The ADP National Employment Report for April is expected to show private job gains of 120,000, versus the prior month’s increase of 62,000. The Department of Energy’s measure of crude oil inventories is expected to have decreased by 3.4 million barrels for the week ending May 1 versus the prior week’s decrease of 6.2 million barrels.
Across the pond, European stocks are higher in mid-day trading as finalized April services PMI for the eurozone and the U.K. were revised slightly higher to 47.6 and 52.7, respectively, while France’s and Germany’s remained unchanged at 46.5 and 46.9, respectively. Meanwhile, France’s industrial production rose more than expected in March, increasing by 1.0% month-over-month (MOM) and 0.9% year over year (YOY). The eurozone’s Producer Price Index increased by 3.4% MOM and 2.1% YOY in March.
Overnight in Asia, stocks were higher as South Korea’s Consumer Price Index rose an as-expected 0.5% MOM and 2.6% YOY in April. Meanwhile, China’s private-sector services PMI for April increased more than expected to 52.6.
In FOREX trading, the U.S. dollar is lower following U.S.-Iran war resolution hopes.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 10.7% lower at $91.35/barrel.
In the metals complex, gold is 3.6% higher at $4,719.77/ounce following a weakening U.S. dollar.