In the month of May, U.S. equities have demonstrated a mixed performance, with a notable lack of a strong finish. Despite this, it’s important to acknowledge that the major indices have remained in positive territory, highlighting the overall robustness of the market. The strength of the market can be largely attributed to the significant contributions from AI and mega-tech companies, which have been driving growth and innovation.
As AI continues to evolve and integrate into various sectors, it has the potential to significantly impact American workers’ productivity. This could lead to a sustained demand for AI technologies, benefiting companies like NVIDIA and encouraging new competitors to enter the sector. The ongoing growth and development of AI technologies could have far-reaching implications for the broader economy, as it continues to shape the future of work and productivity.
Bellow you can review key indexes that I enjoy reviewing which are updated overnight.
The main one for me is the #SP500 which is 3.97% MTD and 9.76% YTD as of the close yesterday. Note that QTD is -0.36%. *Data is a of yesterdays close.
The other side of the picture is the #DOW Jones which is 0.78% MTD and 1.12% YTD as of the close yesterday. Note that QTD is -4.26%. *Data is a of yesterdays close.
The longer term momentum based on YTD results we notice that main and key indexes are positive YTD #NIKKEI ins 13.7%, see chart below similar to #GOLD. Silver is 29.3% YTD. *Data is a of yesterdays close.
One thought to consider is that if the second half of the year remains flat or turns negative for the Nasdaq and/or S&P 500, these indices might end up with close to zero percent returns for the entire year. This could potentially impact the Dow Jones as a more stable source of diversification, as it might not be able to hold its value as effectively in such a scenario.
Going back to trading, the CPI data is significantly impacting futures prices of SP500 and NQ futures, and the fund maintains a long exposure to both the S&P 500 and the Nasdaq.
