From Morningstar: 2024-05-20 06:29:00

Dan Kemp, Morningstar’s global CIO, shares market insights and economic trends. April’s CPI report showed a slowdown in inflation, with core CPI up 3.6% from 3.8% in March. Weaker retail sales and industrial production indicate a slowing economy, but investors remain positive, reflected in rising bond prices and equities.

Bond prices rose last week as US Treasury yields fell, with the Morningstar US Core Bond index up 0.57%. Despite positive bond returns, correlations between bonds and equities are high amid inflation concerns. Technology stocks led the market, with the Morningstar US Market index rising 1.6%, driven by AI enthusiasm and stock price gains in companies like Nvidia, Microsoft, and Apple.

‘Meme stocks’ like GameStop surged 271% before settling at a 58% weekly gain, creating market buzz. Amid improved inflation data and bond yields dip, Fed rate cut expectations remain stable. However, a Fed communication overload this week could influence investor sentiment, though it may not affect long-term financial goals.



Read more at Morningstar: Markets Brief: Tech Stocks Lead Ahead of Nvidia…