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US stocks experienced their best week since November 2023, rebounding sharply from a previous sell-off. Investors have taken heart from recent positive economic data and rushed back into markets. The tone is likely to remain bullish with bouts of occasional volatility.

Regular readers of our newsletter know that over the last several months we have repeatedly highlighted the fragility in the US economy, especially the contradictions between the official numbers and data gathered from other ‘real world’ sources. Accordingly, we have urged investors to be cautious about chasing high-flying names and instead focus on high-quality fixed

Both the S&P 500 and Nasdaq ended the week lower, with the Nasdaq facing significant declines. Earnings reports are highlighting concerns about overhyped AI investments and potential slowdowns in consumer spending. Alphabet’s results intensified doubts about AI returns, while Southwest Airlines, UPS, and Whirlpool raised fears about consumer pullback. The US economy grew at an

Both the S&P 500 and Nasdaq experienced their worst week since April, with the Nasdaq falling 3.6% amid concerns over potential tighter U.S. semiconductor export restrictions to China and comments from Donald Trump regarding Taiwan. The “Magnificent Seven” tech stocks saw a collective 5% decline, with semiconductor companies like Nvidia and Intel dropping nearly 9%.

US markets once again ended the week largely flat, as political developments in the US and France captured investor attention. Despite easing inflation, US Treasury yields rose due to uncertainty around the upcoming elections. The US dollar strengthened, while the Japanese yen hit a 38-year low against the dollar.

It was a relatively quiet week in the financial markets, with most indices finishing close to where they started. French President Macron dissolved the National Assembly after a far-right victory in the EU parliament elections. The Swiss National Bank cut interest rates, while the Japanese yen weakened against the US dollar. 

US stocks concluded the last trading day of May on a high note, marking the sixth positive month in the last seven for all three major indexes. The S&P 500 and Nasdaq Composite posted their best May performances since 2003, while the Dow Jones Industrial Average saw its best May since 2020.

Last week, the S&P 500 narrowly extended its five-week winning streak, registering a +0.03% gain, while the Nasdaq surged +1.4%; however, the Dow fell -2.3%. In the coming week, bond markets face a busy slate of Treasury auctions worth $183B and market focus shifts to inflation data due on 31st May

Wall Street witnessed a record-breaking week, primarily driven by the latest consumer inflation data. The positive sentiment pushed the benchmark S&P 500 above the 5,300-point level for the first time ever.

The S&P 500 and Treasuries notched their first in-tandem weekly gain in a month, buoyed by constructive pronouncements from Federal Reserve Chair Jerome Powell and softer employment data. Please find enclosed our weekly newsletter.