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Market Recap
WEEK OF MAY. 20 THROUGH MAY. 24, 2024
The S&P 500 index edged up last week as gains in the technology and communication services sectors offset declines elsewhere. The S&P 500 ended Friday's session at 5,304.72, up from last week's close of 5,303.27. Still, that's just below Tuesday's fresh record close of 5,321.42. The market benchmark also reached a new intraday high this week when it traded at 5,341.88 on Thursday. It is now up 5.3% in May and 11% for the year.
Investors are trying to reconcile an unexpected acceleration in the US manufacturing purchasing managers' index in May against a month-over-month decline in US consumer sentiment, though the decline was smaller than the market predicted. Signs of faster-than-expected economic activity prompt investors to pull back on their bets for rate cuts.
The technology and communication services sectors were the only sectors that rose this week. Technology climbed 3.4% while communication services added 0.2%.
The technology sector was boosted by shares of Nvidia (NVDA), which jumped 15% after their reporting on Tuesday after the bell. Nvidia posted stronger-than-expected fiscal Q1 earnings and sales. Nvidia also forecast fiscal Q2 revenue above analysts' mean estimate at the time. Shares of Analog Devices (ADI) climbed 8.6% amid higher-than-expected fiscal Q2 adjusted earnings per share and revenue.
On the downside, energy fell 3.8%, followed by a 3.7% drop in real estate and a 2.0% decline in financials. Other sectors down by more than 1% each included consumer discretionary, consumer staples, health care and utilities.
The energy sector's drop came as crude oil futures fell on the week. Among the decliners, shares of Exxon Mobil (XOM) fell 5.2% while shares of EOG Resources (EOG) shed 5.1%.
In real estate, shares of Boston Properties (BXP) declined 6.2%. Barclays trimmed its price target on the stock to $65 per share from $66.
US markets will be closed today, May 27, for the Memorial Day holiday. Companies reporting quarterly results later this week include Salesforce (CRM), Costco Wholesale (COST)and Dell Technologies (DELL).
Economic data will include May consumer confidence on Tuesday, the first revision to Q1 gross domestic product on Thursday and the April personal consumption expenditures index, a closely watched inflation measure, on Friday.
