On Tuesday, the Nasdaq index rose by 0.5%, surpassing 17,000 points for the first time. Meanwhile, the S&P 500 index was close to flat, while the Dow fell by 169 points, a decrease of 0.4%.
Nvidia’s stock price surged by over 6%, continuing its upward momentum from last week. On the other hand, due to a more than 2% drop in Merck & Co.’s stock, along with declines in three other healthcare stocks, the Dow Jones Industrial Average was dragged down.
As the month comes to a close, U.S. stock indices continue their strong trend, with all three major indices setting new records in May. Earlier this month, soft inflation data and better-than-expected quarterly earnings reports boosted market sentiment, with the former indicating that a Fed rate cut may come sooner than investors had anticipated. This month, the Dow increased by about 3%, the S&P 500 index and the Nasdaq index rose by over 5% and 8%, respectively.
Larry Tentarelli, founder of the Blue Chip Daily Trends Report, said that following the extended weekend, “we may see some volatility this week,” but overall, he believes the market is bullish.
Minneapolis Federal Reserve Chair Neil Kashkari stated on Tuesday that before a rate cut, he would like to see “more months” of data indicating a easing of inflation. He also mentioned that if price pressures were to rise again, he doesn’t rule out the possibility of further rate hikes.
Looking ahead, investors are preparing for the release of the April personal income and spending report on Friday, which includes PCE inflation data.