Inflation Stability Hints Rate Cuts; Market Resilience; Energy Leads, Tech Lags

Stay Informed and Stay Ahead: Market Watch, May 31st, 2024.

Late-Week Wall Street Market Digest

Three Key Takeaways

+ DJIA and S&P 500 rose; NASDAQ fell. Sectors: Energy led, Information Technology lagged.

+ PCE index remained stable, while Core PCE decreased slightly with inflation continuing to cool, supporting Q3 rate cuts.

+ NASDAQ shows mixed sentiments with new highs and lows, yet more advances than declines highlight market resilience.

Summary of Market Performance

Indices & Sectors Performance:

  • Major indices, DJIA and S&P 500 up, NASDAQ declined.
  • 10 of 11 sectors increased, Energy leading and Information Technology lagging. Leading Water Utilities (+3.55%), Health Care Providers & Services (+3.28%), and Gas Utilities (+2.96%).

Chart: Performance of Major Indices and Sectors

Moving Average Analysis:

Economic Highlights:

  • April saw modest growth in personal income and spending. PCE index remained stable, while Core PCE decreased slightly. Chicago PMI declined.

NASDAQ Global Market Update:

  • A mix of new highs and lows suggests both bullish and bearish sentiments. More advances than declines signal market resilience.

Treasury Markets:

  • US Treasury securities showed varied yields and prices: 30-year bond at 4.650%, 10-year note at 4.502%, with yield spreads indicating market shifts.

Market Trends:

  • Value saw significant weekly gains, led by small caps. Momentum stocks maintained a strong YTD increase of 18.9%.

Currency & Volatility:

  • The US Dollar Index dipped slightly, while CBOE Volatility pulled back to 12.92. The Fear & Greed Index remains neutral.

Commodities & ETFs:

  • In commodity markets, Brent Crude rose, while Gold and Silver fell. Overall, the Bloomberg Commodity Index saw a decline.
  • ETF’s, Newmont Corp. CDI surged by 11.83%, while leveraged oil, retail, and banking ETNs also experienced significant gains in volume.

Cryptocurrency Update:

  • Cryptocurrency market: Bitcoin rose to $67,737, Ethereum to $3,807. Ripple stable at $0.52.

Stocks:

  • Ault Disruptive Technologies soared by 31.50%, Brand Engagement Network rose by 2.86%, and Gap Inc. surged by 6.44%.

Notable Earnings Today:

  • BRP Inc (DOOO) exceeded earnings expectations in an otherwise inactive day.

Global Markets Summary:

  • Japan up while Hong Kong and China declined, with Europe modesty gaining.

In the NEWS:

Central Banking and Monetary Policy:

  • The Fed Might Soon Have to Worry About More Than Just Inflation – Wall Street Journal
  • Euro-Zone Inflation Up More Than Expected Before ECB Cut – Bloomberg

Business:

  • Autodesk Won’t Restate Financial Results Following Accounting Probe – Wall Street Journal
  • Gap’s Red Carpet Pivot Is a Hit With Shoppers and Wall Street – Bloomberg

China:

Journal

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