US stocks enjoyed another positive week, closing with modest gains on Friday, May 10th. The S&P 500, Dow, and Nasdaq all saw weekly advances, with the Dow marking its most substantial Friday-to-Friday increase since December.
Investors closely followed statements from Federal Reserve officials and eagerly anticipated upcoming inflation data. Atlanta Fed President Raphael Bostic acknowledged signs of an economic slowdown, while Dallas Fed President Lorie Logan expressed uncertainty regarding the effectiveness of current monetary policy in curbing inflation.
Next week, the Labor Department’s release of the Consumer and Producer Price Indexes (CPI and PPI) will offer insights into inflation trends. Analysts predict that the core CPI will show a 3.6% year-on-year increase, the lowest reading in over three years.
Despite concerns about inflation and economic indicators, the market remained relatively stable. The University of Michigan’s preliminary Consumer Sentiment report for May revealed a significant decline, raising inflation expectations in the short and long term.
On Friday, the S&P 500 rose by 0.15% to close at 5,222.04 points, while the Nasdaq lost 0.05% to end at 16,338.49. The Dow Jones Industrial Average increased by 0.31% to 39,510.35 points.
As the first-quarter earnings season wraps up, 77% of S&P 500 companies that reported exceeded expectations. Noteworthy stock movements included Nvidia’s rise following positive sales reports from its major chip supplier, Novavax’s surge after a licensing deal with Sanofi, and SoundHound AI’s jump in revenue.
Investors remain cautious ahead of next week’s crucial inflation data release, as they assess the economic landscape and potential policy implications. Stay tuned for more updates as market conditions evolve.
