Market Commentary
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The CPC Team
August 19, 2024
May 2023 Economic & Market Highlights
- Markets primarily declined during the month of May, impacted by debt-ceiling woes and mixed economic data. Large tech companies' performance significantly inflated S&P 500 gains, overshadowing weaker growth in the broader market.
- The 10-year Treasury yield surged by 38bps to 3.80% in May, reflecting another sticky inflation reading in addition to shifting monetary policy expectations.
- Despite rising recession indicators, 78% of the S&P 500 reported a positive earnings surprise, consumer spending rose a stronger-than-expected 0.8% for the month, and initial jobless claims were below expectations at 229K, indicating continued economic resilience.
- A notable rise in tech stocks, particularly those involved in artificial intelligence, has contributed significantly to the overall gains in the market year-to-date. Yet, when weighing all companies in the index equally, the S&P 500 shows a decline of over 1% for the year, highlighting the divergent performance within the index.
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