The stock market wrapped up May 2024 on a high note, with the S&P 500 achieving its best May performance since 2003. Major indexes, including the Dow Jones Industrial Average and the Nasdaq Composite, also posted significant gains, marking a strong month for investors despite some volatility in tech stocks and mixed economic signals.
Key Takeaways
- The S&P 500 had its best May since 2003, rising 0.8% on the last trading day of the month.
- The Dow Jones Industrial Average surged 1.5%, while the Nasdaq Composite ended just below the flatline.
- Inflation data showed a slight improvement, with the core PCE index rising 0.2% in April.
- Major corporate earnings and economic data releases are expected in the coming weeks.
Market Performance
US stocks ended May 2024 on a positive note, with all three major indexes posting gains. The Dow Jones Industrial Average rose by 1.5%, or about 575 points, while the S&P 500 increased by 0.8%. The Nasdaq Composite, although facing some losses earlier in the day, managed to close just below the flatline.
The S&P 500 and Nasdaq recorded their best May performances since 2003, while the Dow had its best May since 2020. This marks the sixth positive month in the last seven for these indexes.
Inflation and Economic Data
Investors reacted positively to the latest update on the Personal Consumption Expenditures (PCE) price index. The core PCE index, which excludes food and energy prices, rose by 0.2% in April, down from a 0.3% increase in March. This slight improvement in inflation data contributed to a decrease in bond yields, with the benchmark 10-year Treasury yield falling to around 4.5%.
Corporate Earnings and Market Movers
Several companies made headlines with their earnings reports and stock movements. Dell reported a rise in revenue but saw its shares plunge by 17% due to disappointing AI server sales. In contrast, Gap’s stock surged by 28% following a strong earnings report.
Trump Media & Technology Group’s shares fell after former President Donald Trump was convicted on 34 criminal counts related to falsifying business records. Nvidia, a major player in the AI sector, saw its stock price dip slightly as investors took profits.
Looking Ahead
The upcoming weeks will see several key corporate earnings reports and economic data releases. Notable companies like Dollar Tree, Lululemon, and CrowdStrike are scheduled to report their earnings. Additionally, economic indicators such as the Job Openings and Labor Turnover Survey (JOLTS) and ADP employment figures will provide further insights into the labor market.
Geopolitical events and the US political environment will also continue to influence market movements. President Biden’s call for a Gaza ceasefire and the ongoing developments following Donald Trump’s conviction are expected to be closely watched by investors.
Conclusion
May 2024 proved to be a strong month for the stock market, with major indexes posting significant gains. While inflation data showed some improvement, the market remains sensitive to economic indicators and geopolitical events. Investors will be keeping a close eye on upcoming corporate earnings and economic data releases to gauge the market’s direction in the coming weeks.
Sources
- Stock market today: Stocks cap another winning month, S&P 500 logs best May since 2003, Yahoo Finance.
- Stock Market Today: Dow, S&P 500 Finish Higher After PCE Inflation Report; Dell, DJT, MongoDB, Gap, and More Movers, Barron’s.
- Stock Chart Icon, CNBC.
- Stock Market Rallies Late And Ends Month Higher After PCE Data; Jobs Report Looms | Investor’s Business Daily, Investor’s Business Daily.
- Stock market today: Wall Street rallies to close out a bloom-filled May | AP News, AP News.