Market Update
Stocks rebounded from a sour April, closing higher in May. Investors spent the month focused on job gains, gross domestic product, corporate earnings reports, and inflation data in an attempt to determine when the Federal Reserve might cut interest rates. Each of the benchmark indexes reversed the prior month's losses with notable gains in May. The tech-heavy Nasdaq led the way, followed by the Russell 2000, the S&P 500, the Global Dow, and the Dow. Consumer confidence exceeded expectations in May, outpacing April's reading. The labor market showed signs of slowing, while wages inched lower since April 2023.
Among the market sectors in April, information technology, utilities, communication services, and real estate outperformed, while energy lagged.
The Federal Open Market Committee meets for the second straight month in June. Job growth in April was notably slower. However, inflation remained elevated. Investors will focus on how the Fed assesses this information in determining its policy stance moving forward.
International Markets
Eurozone inflation rose for the first time in five months, climbing to 2.6% in May, up from 2.4% in each of the pervious two months. For May, the STOXX Europe 600 Index rose 2.6%; the United Kingdom's FTSE gained 0.8%; Japan's Nikkei 225 Index advanced 0.7%; and China's Shanghai Composite Index fell 0.6%.
