Wall Street Week: Key events and predictions ahead – Prediction – May 20, 2024

On the New York Stock Exchange, the Dow Jones index rose 0.34% on this day, breaking a new record, and the S&P 500 index rose 0.12%. On the other hand, the Nasdaq Composite Index fell 0.07%.

Among stocks in the Dow Jones index, Caterpillar Inc (NYSE:CAT) stood out, rising 5.65 points, or 1.61%, to 356.37. JPMorgan Chase & Co (NYSE:JPM) shares rose 2.38 points, or 1.18%, to close at 204.85. Also notable was Boeing Co (NYSE:BA), whose shares rose 2.03 points, or 1.11%, to close at 184.99.

On the other hand, Amgen (NASDAQ:AMGN) stock price closed at 312.47, down 2.25 points (0.71%). Intel Corporation (NASDAQ:INTC) rose 0.20 point, or 0.62%, to close at 31.83, while Verizon Communications Inc (NYSE:VZ) closed down 0.20 point, or 0.50%. ), the session ends at 40.05.

Among the S&P 500 index components driving growth are shares of Valero Energy Corporation (NYSE:VLO), which rose 4.82% to 166.14, and shares of Freeport-McMoran Copper & Gold Inc (NYSE:FCX). has risen. Chubb Ltd (NYSE:CB) was up 4.25% at 54.25 and Chubb Ltd (NYSE:CB) was up 3.60% at 274.43.

Meanwhile, Paramount Global Class B (NASDAQ:PARA) stock price fell 4.91% to 12.02. Dollar Tree Inc (NASDAQ:DLTR) fell 3.29% to close at 117.31, and Lam Research Corp (NASDAQ:LRCX) fell 3.27% to close at 912.07.

Trading on the Nasdaq Composite Stock Exchange on Friday, shares of Fangdd Network Group Ltd (NASDAQ:DUO) saw significant growth, surging 309.76% to reach 1.68. Also, FLJ Group Ltd (NASDAQ:FLJ) rose 223.59% to close at 1.55, while Jeffs Brands Ltd Unit (NASDAQ:JFBR) rose 109.03% to close at 0.0.65.

At the same time, Blue Star Foods Corp (NASDAQ:BSFC) saw a significant decline of 45.19% to close at 0.08. SINTX Technologies Inc (NASDAQ:SINT) shares fell 39.29% to close at 0.09. Heart Test Laboratories Inc Unit (NASDAQ:HSCS) fell 38.37% to 6.97.

On the New York Stock Exchange, the number of stocks whose prices rose (1,570) outnumbered those whose prices fell (1,256), and the number of stocks that remained unchanged was 85. The situation on the Nasdaq stock exchange was not very friendly. Here, 1,790 companies’ stock prices fell, 1,570 companies showed growth, and 125 companies stayed at the same level.

Freeport-McMoran Copper & Gold Inc (NYSE:FCX) shares rose 4.25%, or 2.21 points, to a new high, ending the day at 54.25. Chubb Ltd (NYSE:CB) also hit a record, up 3.60%, or 9.55 points, to 274.43.

JPMorgan Chase & Co (NYSE:JPM) shares rose 1.18%, or 2.38 points, to hit a high of 204.85. Heart Test Laboratories Inc Unit (NASDAQ:HSCS) shares fell to a record low, ending the day down 38.37%, or 4.34 points, at 6.97.

The CBOE Volatility Index, which measures market expectations based on S&P 500 options trading, fell 3.46% to 11.99, a three-year low.

Gold futures for June delivery rose 1.46%, or 34.85%, to $2.00 per troy ounce. June WTI crude oil futures prices closed at $79.98 per barrel, up 0.95% (0.75%). Brent crude oil futures for July delivery rose 0.80% (0.67) to $83.94 per barrel.

In foreign exchange markets, EUR/USD was little changed, up 0.05% to 1.09, while USD/JPY was up 0.20% at 155.68.

The U.S. dollar index, which measures the value against a basket of foreign currencies, closed at 104.37, up slightly by 0.02%.

Historical data suggests that the current recovery in the U.S. stock market, which hit record highs this week, may continue in the future.

The three major U.S. stock market indices hit record highs in May as inflation concerns eased due to slowing economic growth. The S&P 500, which fell more than 4% in April, is now up 11% year-to-date.

Market analysts who study historical data note that stocks tend to rise faster after corrections of similar size, and often continue to rise even after regaining lost ground.

Following this pattern, the current recovery could herald further gains in stock prices. After the S&P 500 fell 5% in the past, the average gain since then has been 17.4%, according to Keith Lerner, co-chief investment officer at Truist Advisory Services. By the close of trading on Friday, the index was already up nearly 7% from its April low.

Investors are also expressing increased optimism about the economic outlook for a so-called “soft landing” and prospects for strong corporate profits, which could fuel further gains in stock prices.

Market activity will be tested on Wednesday when Nvidia (NVDA.O), whose shares have surged on a wave of interest in artificial intelligence, reports quarterly financial results.

Investors also expect to see further evidence of slowing economic growth next week, which could support interest rate cuts this year, with a focus on durable goods data and consumer sentiment.

Sam Stovall, chief investment strategist at CFRA, noted that momentum will play a key role in determining how various market sectors will perform following the recovery. He pointed out that the S&P 500 sectors that led during the market’s post-correction recovery outperformed the overall market by 68%. Stovall analyzed developments in 35 markets since 1990.

Stovall’s key takeaways are: “After recovering from corrections, it is important to ensure that leaders can continue to move to greater heights.”

The most recent market recovery was led by the Technology (.SPLRCT), Utilities (.SPLRCU), and Real Estate (.SPLRCR) sectors, which posted gains of 11.3%, 10.1%, and 7.9%, respectively.

All 11 S&P 500 sectors are currently approaching their 200-day moving averages, said Willie Delwich, an independent investment strategist and business professor at Wisconsin Lutheran University.

Delwiche found that when at least nine sectors outperform these trend indicators, the average annual return for the S&P 500 index reaches 13.5%.

However, various external factors can hinder this growth. For example, despite recent data pointing to slowing inflation and slower labor market growth, weak signs that the economy is continuing to cool could reignite fears of the economy overheating, which could lead the Federal Reserve to keep interest rates high. Or maybe even raise it.

Despite the positive economic signals, Federal Reserve officials do not yet intend to change their plans to cut interest rates, which many investors expect to begin this year.

It’s also worth noting that many stocks are highly valued, with the S&P 500’s forward P/E ratio of 20.8, well above the historical average of 15.7, according to LSEG Datastream.

Banking strategists advise focusing on short-term selling possibilities, considering that economic conditions are ultimately decisive. They predict the S&P 500 could rise about 4% during the year to 5,500.