Market Commentary
-
The CPC Team
August 19, 2024
May 2024 Economic & Market Highlights
- May was a favorable month for both stock and bond markets. US large cap stocks rebounded, achieving a 5.0% gain for the month, supported by strong first-quarter earnings across various sectors. Developed market stocks also posted notable gains, as the European Central Bank (ECB) exhibited greater confidence in the disinflationary trajectory of the European economy.
- The Federal Reserve's efforts to control inflation showed limited progress, tempering hopes for immediate rate cuts. However, expectation of rate cuts later in the year supported bond prices.
- Growth sectors benefited from the anticipation of declining interest rates, and outperformed value sectors by 2.4%. Additionally, US small cap stocks showed strong performance, aligning closely with US large cap stocks.
- Economic data for May indicated some moderation in the US economy, with capital spending and home sales remaining flat. The Flash Purchasing Managers' Index (PMI) was a highlight, with manufacturing rising to 50.9 and services to 54.8.
Ready to begin?
Contact us
