Stock indexes show mixed performance with the S&P 500 up +0.02%, Dow Jones up +0.45%, and Nasdaq down -0.77%. Defense stocks rally as Trump plans to increase military spending. Bond yields rise due to positive US economic data. Productivity up, job cuts down, and trade deficit at 16-year low. Labor market strength influences Fed policy.

European government bond yields rise as Eurozone economic confidence falls. German factory orders increase unexpectedly. ECB maintains interest rates, inflation expectations steady. Swaps predict low chance of ECB rate hike. Overseas stock markets decline, with Euro Stoxx 50 down -0.16% and Japan’s Nikkei down -1.63%.

Chipmakers, software stocks, and mining companies lead losses in US markets. Defense stocks surge after Trump announces military budget increase. AeroVironment, Lockheed Martin, and Northrop Grumman among top gainers. AbbVie denies talks to acquire Revolution Medicines. Alcoa downgraded, DoorDash, Toast Inc, and Walmart stocks fall. Upward movers include Omnicell, Generac Holdings, and Costco Wholesale. Earnings reports scheduled for Acuity Inc, RPM International Inc, TD SYNNEX Corp.

Read more at Nasdaq: Stock Indexes Mixed on Big Tech Weakness and Higher Bond Yields