S&P 500, Dow Jones Jump on Friday as Stock Markets Reverse

Throughout the majority of the week, stock markets remained downcast due to Federal Reserve members dismissing the possibility of an imminent rate cut and investor concerns over a potentially high Personal Consumption Expenditures (PCE) number. However, sentiment shifted on Friday, resulting in a notable market turnaround. The major indices closed the week on a positive note, with the S&P 500 and the Dow Jones Industrial Average showing significant gains.

S&P 500 Chart H4 – The 50 SMA Held As Support

This recovery can be attributed to a combination of easing fears regarding the PCE report and potential profit-taking or position adjustments ahead of the weekend. The market’s resilience, despite earlier concerns, suggests a complex interplay of investor sentiment and economic expectations. Traders will likely continue to watch for further comments from the Fed and upcoming economic indicators to gauge the market’s direction in the coming weeks.

S&P 500 and Dow Jones Market Performance on Friday

• Dow Jones Industrial Average: After a two-week decline, the Dow rebounded, rising by 575 points, or 1.50%, to close at 38,686.
• S&P 500: The index also saw a positive end to the week, increasing by 42.03 points, or 0.8%, to finish at 5,277 points.

US Stock Indices Monthly Performance

• S&P 500: The S&P 500 surged approximately 5% in May, marking its strongest month since February.
• Nasdaq: The technology-heavy Nasdaq saw an impressive increase of around 7%, its largest monthly gain since November.
• Dow Jones Industrial Average: The Dow climbed 2.3% in May, achieving its best monthly performance so far in 2024.

While all three major U.S. stock indices experienced declines over the past week, they each registered notable monthly gains and substantial advances on Friday. These gains reflect a strong rebound in market sentiment despite mid-week volatility and concerns over potential rate hikes and economic data. The positive momentum on the last trading day of the month underscores the resilience of the markets and the optimism among investors about the economic outlook and corporate earnings.

S&P 500 Index Live Chart