As investors awaited news from the debt ceiling negotiations, markets continued to ebb and flow. The S&P 500 continued to trade range-bound, oscillating between 4100 and 4200. Fed rhetoric continued to open the door for another set of interest rate hikes and hammered the front end of the yield curve. Economic data reported during the week seemed to substantiate the need for more rate hikes as Fed Fund Futures saw the probability of a June rate hike move to 64.2% from nearly zero three weeks ago. A blowout quarter and an optimistic outlook from semiconductor chip designer NVidia highlighted the last stint of first-quarter earnings. The stellar report prompted another rally in mega-cap technology issues that have accounted for most of this year’s market returns.
The S&P 500 gained 0.3%, the Dow lost 1%, the NASDAQ increased by 2.5%, and the Russell 2000 traded unchanged. US Treasuries endured another steep selloff as yields across the curve rose—bond price fall when their yields increase. The 2-year yield increased by twenty-nine basis points to 4.56% while the 10-year yield rose by eleven to 3.8%.
Oil prices increased by 1.1% or $0.79 to close at $72.55 a barrel. Gold prices fell 1.9% or $38.40 to $1943.4. Copper prices continued to struggle, closing down $0.06 to $3.67 an Lb.
The dollar strengthened against the Yen, Euro, British Pound, and Yuan. China voiced concern over the recent appreciation of the US Dollar relative to its currency.
US economic data reported for the week showed a resilient economy. First quarter GDP figures came in strong than expected at 1.3% growth versus the expectation of 1.1%. German GDP contracted for the second quarter in a row, putting the country into a technical recession defined as two consecutive quarters of negative growth. The US labor market only showed 229k initial jobless claims; the street was looking for 250k. Continuing Claims also fell to 1794k from 1799k in the prior week. Personal Spending increased to 0.8% in April, higher than the anticipated 0.4%, highlighting the strength of the consumer. Personal income increased to 0.4%. The Fed’s preferred measure of inflation, PCE, came in hotter than expected. The headline number came in at 0.4% versus the estimated 0.3% month-over-month and was up 4.4% year-over-year from March’s 4.2%. The Core reading was also up 0.4% over March and increased 4.7% annually. New Home Sales increased to 683K, better than the expected 670. Consumer Sentiment also ticked a bit higher in May, with the University of Michigan’s data showing a reading of 59.2, up from the last preliminary reading of 58.
Investment advisory services offered through Foundations Investment Advisors, LLC (“FIA”), an SEC registered investment adviser. FIA’s Darren Leavitt authors this commentary which may include information and statistical data obtained from and/or prepared by third party sources that FIA deems reliable but in no way does FIA guarantee the accuracy or completeness. All such third party information and statistical data contained herein is subject to change without notice. Nothing herein constitutes legal, tax or investment advice or any recommendation that any security, portfolio of securities, or investment strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of FIA for services, execution of required documentation, including receipt of required disclosures. All investments involve risk and past performance is no guarantee of future results. For registration information on FIA, please go to https://adviserinfo.sec.gov/ and search by our firm name or by our CRD #175083. Advisory services are only offered to clients or prospective clients where FIA and its representatives are properly licensed or exempted.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
Investment advisory services offered through Donato Wealth Management, PLLC, dba Empower Wealth Management and Empower Wealth & Tax (“Empower Wealth Management” or “EWM”),
an SEC registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional adviser before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned, or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Personal investment advice can only be rendered after the engagement of EWM, execution of required documentation, and receipt of required disclosures. All investment and insurance strategies have the potential for profit or loss. Asset allocation and diversification will not necessarily improve an investor’s returns and cannot eliminate the risk of investment losses. Past performance is no guarantee of future results. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD #305031.
Insurance products and tax services are offered through Senior Tax and Insurance Advisors, PLLC, dba Empower Wealth Group (“Empower Wealth Group” or “EWG”). Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products offered through EWM. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. EWG is not affiliated with or endorsed by the U.S. Government, Social Security Administration, nor the federal Medicare program. You may be contacted by a licensed insurance agent. Calling the number above will direct you to a licensed insurance agent. EWG may not offer every plan available in your area. Any information provided is limited to plans available in your area. Please contact Medicare.gov or 1-800-MEDICARE.
EWM and EWG are both affiliated companies of Empower Wealth, LLC (“Empower”). Investment adviser representatives of EWM may have a financial incentive to recommend tax and insurance products and/or services offered through EWG which presents a conflict of interest. This conflict is addressed by EWM’s adoption of its Code of Ethics, which requires that all EWM’s Associated Persons place the interest of clients ahead of their own. Clients of EWM are also free to choose their own tax and/or insurance professionals and are under no obligation to utilize the services offered through any related entities or persons associated with Empower.
Strategic Partners listed on this page are not employees of EWM and are not affiliated through common ownership.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.
© Empower Wealth Management All Rights Reserved.
