U.S. Stocks Snap Slide; Treasury Rally Continues: Markets Wrap

  • S&P 500 down more 5.3% in May; financials under pressure
  • Revised U.S. GDP shows American economy grew at 3.1% in 1Q
Morgan Stanley Chief Executive Officer James Gorman talks about U.S.-China tension and its impact on markets.This is an excerpt of the full interview. Source: Bloomberg
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U.S. stocks rebounded from a slump that took them to a 12-week low, while Treasuries resumed a rally that pinned yields at 20-month lows amid concern that the trade spat with China could derail global growth. Oil tumbled.

The S&P 500 pared its May decline to 5%, with the 200-day moving average providing support during an afternoon swoon. Technology shares paced the gain, while banks contributed most to losses. A fresh batch of economic data suggested the expansion was on firm footing before the Trump administration escalated the trade war earlier in May, but an inversion in part of the yield curve has investors on edge about the threat of a recession.