Premier Wealth Timely Topics
Milestones were met in May, with all three major U.S. equity indexes hitting new highs. Additionally, markets in the U.K., India and Germany also set records. Stocks were driven up by positive corporate earnings results and greater participation from sectors other than technology – and stocks other than the MAGMAN six tech stocks – with 10 of 11 sectors having positive performance.
“This was the first quarter since the fourth quarter of 2022 that the other 494 stocks in the S&P 500 had positive earnings growth,” Raymond James Chief Investment Officer Larry Adam said. “In addition, big tech stocks continue to be driven by tailwinds from artificial intelligence. Even the utilities sector saw a performance boost from AI energy demand in May.” - From Raymond James’s May Monthly Recap Newsletter
With inflation moving slowly subsiding to the Federal Reserve’s (Fed’s) 2% goal and the economy proving resilient, interest rate cuts are likely to be further delayed, which will continue to put downward pressure on the real estate market. There are mixed feelings as to when interest rate cuts are likely to come, however there is still strong conviction that we will see one by the end of the year.
The Congressional Budget Office released new estimates for the cost of extending the 2017 Tax Cuts and Jobs Act individual tax cuts, raising new questions as to what the tax debate might look like next year as the extensions are set to expire.
Wondering How Your 401(k) Balance Stacks Up To Others?
How Inflation Adjustments Work
Should You Rent Or Buy A House
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Ed Henrichs and not necessarily those of Raymond James. You should discuss any tax or legal matters with the appropriate professional.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.
