Stock market sees Dow dropping over 3% in May, lagging behind Nasdaq and S&P 500.

From Morningstar: 2024-06-01 05:08:00

The Dow Jones Industrial Average dropped over 3% in its sharpest two-week slide in a month, lagging behind the Nasdaq Composite and S&P 500 in May, according to Dow Jones Market Data. Robust U.S. economic data and weak government debt auctions pushed Treasury yields higher, influencing the stock market downturn. While some tech stocks have ceded ground to utilities and small-caps, analysts caution against solely relying on the Dow’s decline to gauge May’s market performance. Utilities and small-cap stocks surged in May, while consumer-discretionary sectors like energy and retail lagged, with some retailers seeing significant declines. Despite the outperformance of previous laggards like utilities, tech-centric companies are still dominating the market, according to analysts. Stocks finished mostly higher on Friday, with the Dow up 1.5%, the S&P 500 up 0.8%, and the Nasdaq nearly flat, following April’s personal-consumption expenditures index meeting expectations.



Read more at Morningstar: Dow trails Nasdaq by most in a year. What it means for the stock market.