Bond market rally and tech selloff lead to S&P 500 fall to 5,200

From Yahoo Finance: 2024-05-31 11:49:59

The biggest bond market extended its rally in May after a cooldown in inflation data raised hopes of a rate cut by the Federal Reserve this year. Treasuries are on track for their best month this year, while stocks took a hit from a tech selloff. Data showed a marginal increase in inflation and a drop in consumer spending, fueling expectations of monetary policy easing in the second half of 2024. The market reflected optimism on Fed rate cuts, with a decrease in 10-year yields to 4.51%. Meanwhile, top stocks like Dell Technologies Inc. faced losses amidst investor expectations.

Investors are hopeful as inflation data shows steady disinflation, potentially leading to rate cuts by the Fed starting in September. The report is seen as slightly dovish, signaling progress in disinflation but not enough for multiple rate cuts in 2024. Corporate news includes Carl Icahn acquiring a stake in Caesars Entertainment Inc., Bill Ackman preparing for an IPO of Pershing Square, and Gap Inc. reporting positive results. Moderna Inc. secured US approval for its RSV vaccine, while Hess Corp. shareholders approved its acquisition by Chevron Corp. Stock markets, currencies and commodities experienced mixed movements amid the news.



Read more at Yahoo Finance: S&P 500 Falls to 5,200 as Bonds Rise After PCE: Markets Wrap