New York (AP) – Wall Street closed the month of May on a positive note as stocks surged on Friday following a report suggesting that inflation is not currently accelerating. The S&P 500 witnessed a 0.8% increase, marking its sixth winning month out of the last seven. After recovering from a challenging April, the main indicator of the U.S. stock market hit an all-time high towards the end of the month.
The Dow Jones Industrial Average also saw a significant increase of nearly 575 points, or 1.5%, while the Nasdaq composite struggled due to lower prices in some major technology stocks, resulting in a minor decrease of less than 0.1%. Gap emerged as one of the top gainers in the market, surging by 28.6% after reporting stronger profits and revenues for the latest quarter than expected by analysts.
Stocks across the board received a boost from a decline in Treasury yields in the bond market, following an inflation report that was in line with expectations. This development has sparked talks about when Wall Street might see the lower interest rates that are being anticipated. The Federal Reserve’s confidence in inflation heading towards its targeted 2% threshold is growing, as indicated by the report.
Analysts are closely monitoring the delicate balance between economic growth and inflation, with concerns about a potential recession arising if rates remain high for an extended period. Despite recent positive market movements, there are signs of consumer spending slowing down, leading experts to believe that businesses need to prepare for changes in consumer behavior.
Economic uncertainty and shifting consumer habits have influenced Treasury yields, with traders anticipating potential rate cuts by the end of the year. Real estate stocks saw significant gains in response to expectations of easier interest rates, while tech stocks like Dell and Nvidia experienced declines due to varying factors impacting their profitability.
In the midst of market fluctuations, Trump Media & Technology Group faced challenges following the conviction of Donald Trump on felony charges, impacting its shares. Meanwhile, MongoDB, despite surpassing profit and revenue forecasts, saw a drop in its stock value due to underwhelming profit forecasts for the coming quarter and year.
Overall, the S&P 500 rose by 42.03 points to close at 5,277.51, with the Dow climbing 574.84 points to 38,686.32, and the Nasdaq slipping to 16,735.02. International stock markets also displayed mixed performances across Asia and Europe, reflecting the global impact of economic trends and developments.