The S&P 500 trades at its best level of the day erasing losses seen at the open, following the release of a much hotter-than-expected PPI for April. The Nasdaq is outperforming as Technology (XLK) and mega-cap names gain traction.

Apple (AAPL) and Nvidia (NVDA) reached new 52 week highs as the Street awaits Trump-Xi meeting.

Breadth is weak this afternoon, with more new lows than new highs in the S&P 500, Mid Cap 400, and Small Cap 600.

Strength is mixed, with only six sectors trading in green. Communication Services (XLC) holds the widest gains due to a solid showing from Alphabet (GOOG/L), while a rebound in semiconductor stocks is driving the gains in the Technology (XLK) sector. Defensive sectors are trading lower, with Utilities (XLU) being the worst performer.

The 10-year Treasury Yield (TNX) is flirting with 4.5% following this morning’s PPI. It will be useful to see if it hits a ceiling there again.

The U.S. and China are nearing an agreement in which each side may identify ~$30 billion worth of goods where tariffs could be reduced. However, it’s unclear whether any specific goods will be identified by both Presidents this week.

It was a weak 30-year bond auction to say the least. The auction drew a high yield of 5.046%, the highest auction level since August 2007.