Broker Check

Market Recap

June 01, 2024

The major market indexes have advanced again to start the second half of May. Tech shares, particularly AI stocks, have helped drive the performance of the Nasdaq. Investors were looking for responsive comments from Federal Reserve officials for any potential changes in interest rate expectations. While trading volume was relatively light towards the end of May, investors latched onto favorable corporate earnings data from some major tech and AI companies. 

Investors anticipated the release of the Consumer Price Index. A softer Consumer Price Index showed inflation slowed somewhat in April. Stocks rallied with the Nasdaq, the Dow, and the S&P 500 closing at record highs following this release. Stocks ended that week with mixed results with The Dow closing at a new record high, the S&P 500 ticking slightly up and the Nasdaq dropping slightly.

Towards the end of May, the Nasdaq secured a new record high and technology led the market sectors, while consumer discretionary and energy fell. Investors saw favorable earnings data from several retailers while trying to gauge when the Fed might begin cutting interest rates. The minutes from the last Federal Reserve meeting were released, and some officials indicated a willingness to hike rates if necessary. That news coupled with investors awaiting earnings data from a major AI company caused the major indexes to fall.

Reviewing returns for the second half of May, the markets were down slightly. As of market close on May 31st, the Dow fell 1,222 points (3.06%), the S&P 500 dropped 31 points (0.01%) and the NASDAQ lost 7 points (0.00%).

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