Market reached all-time highs in May, with tech and utility sectors strong, while energy struggled.

From Nasdaq: 2024-06-03 13:55:36

In May, all major equity indices reached all-time highs. Tech and Utility sectors were strong performers, while Energy and Consumer Discretionary struggled. Growth outperformed Value, with four mega tech stocks leading the S&P 500 gains. Economic data showed signs of disinflation, but the Fed remains vigilant. Markets are cautious about the trade and geopolitical landscape.

Corporate earnings for Q1’24 were better than expected, with 78% of S&P 500 companies beating EPS estimates. However, earnings beats and revenue surprises were lower than medium and long-term averages, raising concerns about breadth divergence. Communication Services sector posted the highest earnings growth rate, with AI being a hot topic on earnings calls.

Economic data in May showed mixed results, with weaker-than-expected job creation and income growth but steady consumer confidence. PPI increased unexpectedly, and retail sales showed signs of a cooling economy. GDP growth was revised down to 1.3%, and the Fed is closely monitoring inflation. Treasury yields fell, the dollar declined, and oil prices dropped for the second consecutive month.

Looking ahead, June is packed with market catalysts, including key economic data releases and the FOMC rate decision. The annual Russell Reconstitution on June 28 marks a high equity volume day. Investors are advised to consult with a securities professional for personalized investment advice.



Read more at Nasdaq:: May 2024 Review and Outlook