Good morning. U.S. stocks snapped a six-day winning streak on Tuesday, retreating modestly in one of the quietest trading sessions of the year. While the S&P 500 has posted gains in 18 of the past 23 trading days and is up more than 20% off its April lows, markets appear to be taking a breather ahead of fresh economic catalysts and clarity on the latest tax legislation. A pause in reciprocal tariffs, coupled with moderating inflation, has underpinned the recent rally.

Leadership on the day was defensive, with utilities and consumer staples eking out small gains while growth sectors gave back some ground. Bond yields held near 4.5%, gold surged on safe-haven flows, and crude oil dipped modestly amid Middle East headlines. Investors now turn to retail earnings, with Target, Lowe's, and TJX all reporting today.

Trump Pushes Tax Bill Through House
WSJ reports that President Trump’s sweeping new tax legislation advanced through the House late Monday, a major step in the administration's economic agenda. The bill would extend prior tax cuts, cap deductions, and overhaul estate and foundation tax provisions.
Read Full Story

SALT Deduction Debate Resurfaces in GOP Tax Push
CNBC explains how negotiations over the State and Local Tax (SALT) deduction are surfacing again as lawmakers work to finalize Trump’s new tax framework. The outcome could significantly impact high-income taxpayers in states like New York and California.
Read Full Story

Target Earnings on Tap
WSJ previews Target’s Q1 earnings, noting investors are watching closely to assess consumer resilience amid trade uncertainty and inflation. Analysts expect sales softness in discretionary categories.
Read Full Story

Oil Prices React to Middle East Tensions
MarketWatch reports crude prices climbed briefly after unconfirmed reports that Israel may be preparing strikes on Iranian nuclear sites, though prices ultimately closed modestly lower.
Read Full Story

New GOP Tax Targets Philanthropy
Bloomberg highlights a new provision in the GOP tax bill that could dramatically change the treatment of charitable foundations, potentially curbing influence from billionaire philanthropists.
Read Full Story

U.S. equity markets closed slightly lower Tuesday, as the S&P 500 paused after a powerful run higher this month. Most sectors ended in the red, with the exception of defensive names. Large-cap tech stocks weighed on indexes, with declines in names like Apple, Google, and Nvidia reversing intraday gains late in the session. The Nasdaq and S&P 500 each closed slightly down, though the market remains in strong shape overall, with the SPX still up 2% year-to-date including dividends.

Gold prices rose sharply, with June contracts climbing over 1.5% to settle at $3,284.60 per ounce, supported by a weaker dollar. Bitcoin prices hit a new 2025 high, climbing over $106,000. Meanwhile, U.S. crude oil fell slightly to $62.56 per barrel despite Middle East geopolitical tensions, while natural gas prices surged more than 10% on output declines and stronger demand forecasts. Treasury yields hovered around 4.5% as markets digested last week’s Moody’s downgrade and watched for updates from Washington on fiscal policy.

Markets remain near record highs, supported by cooling inflation, strong earnings, and a temporary easing in trade tensions. But with a dense calendar of retail earnings, geopolitical risks, and tax policy details still to be resolved, volatility could return quickly. We continue to monitor Treasury yields, consumer sentiment, and signs of resilience in U.S. household demand.