DIA - Buy In May And Say Hooray: Stocks Jump As Inflation Cools

2024-05-31 16:00:14 ET

Summary

• Stocks rebounded in May, with the S&P 500 rising nearly 4% and the Nasdaq 100 ETF rallying almost 5%.
• Small-cap stocks outperformed large caps as the yield on the US 10-year Treasury note dipped toward 4.5%.
• The Utilities sector performed well, while the Energy and Consumer Discretionary sectors struggled.
• Another solid quarter of GDP growth appears underway as S&P 500 EPS estimates continue to climb.
• Just 28 basis point of Fed easing is expected this year, with key labor market data on tap next week.

Stocks managed to post a May rebound following significant losses in April . Though the S&P 500 (SP500) gave back some gains over the final three sessions, it rose nearly 4% for the month. Relative strength was seen in Nasdaq stocks - the Invesco QQQ Trust ETF (QQQ) rallied almost 5%. In small-cap land, the iShares Russell 2000 ETF (IWM) climbed more than 4%, better than the return of large caps, which might come as a surprise to readers....

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