The S&P 500 (Index: SPX) set a new record high of 5,308.15 on Wednesday, 15 May 2024 before slipping back to close out the trading week that was at 5,303.27. The index rose a little over 1.5% about its previous week's close.
The momentum behind the move was provided by Federal Reserve Chair Jerome Powell, who assured markets the week's higher-than-expected producer price inflation report would not respond by hiking U.S. short term interest rates.
With that likelihood greatly reduced, investors sent all the major U.S. stock indices higher during the week. Most notably, the Dow Jones Industrial Average (Index: DJI) crossed above the 40,000 milestone, going on to end the week at 40,004.35.
Meanwhile, the trajectory of the S&P 500 took it to the upper end of the dividend futures-based model's projected range, which can be seen in the latest update to the alternative futures chart.
Other things happened during the trading week that ended on Friday, 17 May 2024. Here's our summary of the week's market moving headlines:
- Monday, 13 May 2024
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- Signs and portents for the U.S. economy:
- Brent hovers above $83 as inflation data takes centre stage
- The case for forever high interest rates
- Fed minions think they have a messaging problem, are expected to deliver a rate cut in September 2024:
- Fed's Jefferson flags challenges on communications front
- Fed to cut rates in September, say nearly two-thirds of economists
- Growth signs, bigger stimulus developing in China:
- China's consumer prices rise for third month, signalling demand recovery
- China to kick off 1 trillion yuan stimulus bond issues this week
- BOJ minions see inflation from weak yen:
- Nasdaq, S&P, and Dow finish mixed as inflation data looms
- Tuesday, 14 May 2024
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- Signs and portents for the U.S. economy:
- Oil settles lower as inflation data gives way to market jitters
- Strong services fan US producer inflation in April
- US bank failures could surge by almost 50, Nomura analyst says
- Biden hikes US tariffs on Chinese imports
- Fed minions say won't hike rates because of producer price inflation running hot, see problem with household debt:
- Fed's Powell: PPI 'mixed,' next move unlikely to be a rate hike
- NY Fed: Amid rising debt levels, some borrowers face increased stress
- Bigger trouble, stimulus developing in China:
- Utility price hikes in parts of China hand another blow to households
- China's central bank leaves key policy rate unchanged
- BOJ minions not liking the inflation they see:
- ECB minions thinking about rate cuts, but may delay them because the U.S. Fed is delaying them:
- Easing euro zone inflation creates room for rate cuts, ECB's Knot says
- Delayed Fed cuts could also slow ECB, Wunsch says
- Nasdaq notches new record closing high a day ahead of CPI; Dow, S&P also advance
- Wednesday, 15 May 2024
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- Signs and portents for the U.S. economy:
- US consumer prices rise less than expected in April; core CPI slows
- U.S. homebuilder sentiment tumbles as rates slow buyer traffic
- Oil rebounds, gains 1% after US crude draw, lukewarm inflation data
- Fed minions say they're standing by to take action later in 2024:
- Fed hawks and doves in their own words
- Fed's Kashkari: rates should stay on hold 'for a while longer'
- Bigger stimulus developing in China:
- Bigger trouble developing in Eurozone:
- CPI gains boost S&P to close above 5,300 for the first time, propel Nasdaq, Dow to records
- Thursday, 16 May 2024
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- Signs and portents for the U.S. economy:
- Oil up after US economic data strengthens rate cut expectations
- US labor market fairly tight, broader economy losing steam
- Fed minions say they want better data before committing to rate cuts:
- Fed remains cautious on cuts even as data improves
- Fed's Mester seeks more evidence inflation pressures are easing
- Exclusive: Fed's Williams welcomes inflation data, not ready to seek rate cuts
- Bigger stimulus developing in China:
- Bigger trouble developing in Japan:
- ECB minions say they're in "no hurry" to cut rates, see weaknesses in Eurozone economy:
- ECB not in a hurry to cut rates, should take measured steps after June, Kazaks says
- Commercial property is weak link in euro zone finance, ECB says
- Dow unable to hold onto 40,000, ends little changed; Nasdaq, S&P 500 dip slightly
- Friday, 17 May 2024
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- Signs and portents for the U.S. economy:
- Fed minions say they'll hike rates if they have to, even though nobody believes them:
- Growth signs, "historic" bailout developing in China:
- China's factories fire up but consumer, property weakness persists
- China unveils 'historic' steps to stabilise crisis-hit property sector
- Nasdaq, S&P 500, Dow end record-breaking week near all-time highs
The Atlanta Fed's GDPNow tool is forecasting an annualized real GDP growth rate of 3.6%, down from the +4.2% growth it projected in the previous week.
Image Credit: Microsoft Copilot Designer.. Prompt: "An editorial cartoon of a Wall Street bull celebrating the Dow Jones Industrial index hitting 40,000".
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Closing values for previous trading day.
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