Stock market today: Stocks cap another winning month, S&P 500 logs best May since 2003
What were the performance figures for the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite on the last trading day of May?
On the last trading day of May, the Dow Jones Industrial Average (DJIA) rose by 1.5%, or about 575 points. The S&P 500 increased by 0.8%, while the tech-heavy Nasdaq Composite finished just below the flatline, overcoming earlier losses.
How did the "core" Personal Consumption Expenditures price index change in April, and what was its significance?
The "core" Personal Consumption Expenditures (PCE) price index, which excludes the volatile food and energy components, rose by 0.2% in April. This was a slowdown from the 0.3% increase observed in March. The core PCE index is significant as it is closely watched by the Federal Reserve, serving as an important indicator for underlying inflation trends4.
In April, the PCE Price Index increased by 0.3%, while the core PCE, excluding food and energy, increased by 0.2%. Economists had forecasted the overall PCE Price Index to rise 2.8% on an annual basis in April, the same rate of inflation as seen in March. The core PCE year over year rose 2.8% in April, in line with forecasts and following an increase of the same amount in March.
The slowdown in the core PCE price index indicates that price increases remained sticky last month, meaning that inflation didn't decrease as much as economists and the Federal Reserve might have hoped. This data can influence the Fed's decisions about interest rates, as it seeks to keep inflation under control without causing a recession.
How did the performance of the S&P 500 and Nasdaq in May 2023 compare to their historical performances?
The performance of the S&P 500 and Nasdaq in May 2023 was notably strong compared to their historical performances. The S&P 500 logged its best May since 2003, while the Nasdaq Composite also posted its best May performance since 2003. Both indexes experienced significant growth during the month, with the S&P 500 advancing 3.4% and the tech-heavy Nasdaq increasing by 5.5%. These gains contributed to the sixth positive month in the last seven for all three major indexes, including the Dow Jones Industrial Average.