Economy

Strong Monthly Gains for U.S. Stocks

Strong Monthly Gains for U.S. Stocks

The S&P 500 and Nasdaq Composite indexes recorded weekly losses on Friday, ending a five-week winning streak, as investors assessed the inflation report and the potential timing of the Federal Reserve's interest rate cuts. The S&P 500 rose by 44.53 points, or 0.85%, to close at 5280.01, despite a 0.5% decline for the week, with a monthly gain of 4.8%. The Nasdaq Composite fell by 2.06 points, or 0.01%, to 16735.02, marking a weekly loss of 1.1%, but up by 7% in May. The Dow Jones Industrial Average increased by 595.78 points, or 1.56%, to 38707.26, while declining by 1% for the week, and rising by 2.3% monthly. Minneapolis Federal Reserve President Neel Kashkari stated that the Fed should wait for significant progress on inflation before lowering interest rates. A divergence has emerged among major central banks regarding interest rate expectations, with the Federal Reserve, typically the first to act, becoming more hawkish amidst persistently high inflation. The European Central Bank is now expected to cut interest rates before the Federal Reserve.

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