Markets seesawed back and forth this week. Will positive momentum from May continue as equities seek to gain ground?
Monday
S&P 500 0.30% | NASDAQ 0.86%
Treasure yields and oil climbed higher early in trading on as military strikes in Lebanon kept tensions high. Fighting stopped later in the day, however, easing pressures on the energy sector. Chip stocks climbed higher as demand is projected to climb further.
Tuesday
S&P 500 0.26% | NASDAQ 0.97%
Markets reversed course on Tuesday, erasing all of Monday’s gains. The rotation in and our of tech and chip makers continued throughout the day, ultimately finishing lower. Existing home sales ticketed higher in May.
Wednesday
S&P 500 1.62% | NASDAQ 1.98%
Volatility measures jumped midweek as the CBOE Volatility index (VIX) reading spent all day above 20. The Consumer Price Index (CPI) contributed to negative sentiment as the data from May showed a surge in prices. Growth stocks sold off in the wake of the announcement.
Thursday
S&P 500 1.75% | NASDAQ 2.54%
Equities drove sharply higher as previously announced military strikes in Iran were called off, sending oil prices falling. Optimism of the conflict resolving soon sent al major indexes higher with the Dow Jones (DOW) up almost 2%. Producer Prices (PPI) soared, however, and will be closely watched in the months to come.
Friday
S&P 500 0.50% | NASDAQ 0.31%
Friday’s big headline was the long-awaited IPO of the aerospace manufacturer, SpaceX (SPCX). Markets moved higher across the board while little economic data was released going into the weekend. Against past trends, markets rallied ahead of the weekend. Against past trends, markets rallied ahead of the weekend with negotiations still ongoing on peace deals abroad.
Conclusion
S&P 500 0.65% | NASDAQ 0.70%
In a week full of sharp reversals indexes ended higher at the possibility of a promising outcome overseas. Oil prices were in focus, again, this week as futures trading remain at elevated levels. The price pressures showed in the data from May as inflation measures (CPI & PPI) jumped to the highest level in 3 years. If consumers could have their way, prices would fall lower to ease the pain at the pump. For markets, the hope for a reprieve on sharp changes of directions would also be welcomed. If a resolution is made after the weekend, there could be fresh momentum in June after a positive performing month in May. We did not see the “sell-in-May” scenario, so equities have continued to gain ground in the first week of June.
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