From Nasdaq: 2024-05-01 13:00:00

Stocks declined in May amidst rising bond yields, marking the first monthly drop since April. Economic data showing stubborn inflation raised concerns. Corporate earnings performed better than expected, especially in tech. Gold continued to outperform, while geopolitical tensions remained high. Concerns over Fed rate cuts lingered amidst mixed economic indicators.

In April, economic data highlighted persistent inflation and mixed economic growth. A shift in market sentiment led to doubts about rate cuts as inflation stubbornly remained high. While corporate earnings exceeded expectations, a sharp market pullback occurred, leading to oversold conditions. Geopolitical tensions eased slightly despite ongoing concerns about the Middle East conflict.

With over 50% of S&P 500 companies reporting Q1 earnings, revenues and EPS generally beat estimates. Companies beat revenue estimates 54% of the time, with an 81% EPS beat rate. Financial and communications sectors outperformed, with overall earnings exceeding estimates. However, outlook growth rates were slightly less optimistic, but sectors like Communications showed robust growth.

Following earnings reports, Consumer Staples saw the largest two-day gains, while Communications stocks declined. The forward 12-month PE for the S&P 500 stood at 20.0, above historical averages. Looking ahead, economic data releases and the Federal Reserve meeting in May will impact market sentiment. The month will also see announcements for FTSE Russell US index changes.



Read more at Nasdaq:: April 2024 Review and Outlook