A Ninth Consecutive Weekly Gain
The U.S. stock market extended its rebound from the first quarter’s negative results as the S&P 500 recorded its ninth consecutive weekly gain. Led by information technology stocks, the Nasdaq finished 2.4% higher for the week and the S&P 500 added 1.4%.
Overall, non-energy minerals, consumer durables, and electronic technology were among the top performers during the week, while energy minerals, industrial services, and utilities lagged.
A Strong Month of May in the Books
May’s U.S. stock market gains were big, though they fell short of the unusually strong results recorded in April. The Nasdaq climbed 8.4% in May and the S&P 500 gained 5.1%. In April, both indexes recorded double-digit gains, rebounding from negative first-quarter results.
Year to date, the Russell 2000 small-cap index leads the way with a gain of 17.6%, the Nasdaq Composite is ahead 16%, and the S&P 500 shows a 10.7% gain.
Oil Falls as Iran Talks Progress
Trader optimism over the latest round of U.S.-Iranian negotiations sent oil prices lower for the second week in a row. U.S. crude was trading around $88 per barrel on Friday afternoon, down nearly 10% for the week and roughly 16% lower for May.
Stock indexes in South Korea and Japan climbed to record highs on Friday. A South Korean benchmark surged nearly 11% for the week amid optimism over AI-related stocks, while a Japanese index rose nearly 2%.
Gold Under Pressure
Gold started the week with a bounce, trading around $4,520 per ounce on Tuesday. However, the bounce would not last. By Wednesday gold had fallen to around $4,420, and on Thursday prices slid further, touching a low near $4,390, their weakest level in nearly two months. The dynamic continues to reflect a market where rising rate expectations from persistent inflation are weighing on the metal even as the fundamental case for owning a safe-haven asset remains strong.
Bitcoin Drifts Lower
Bitcoin spent most of the shortened week drifting lower, unable to sustain the enthusiasm from equities. It slipped below $75,000 on Wednesday on new developments regarding the conflict in Iran, and fell further on Thursday, trading near $73,000 to $74,000 as hot inflation data and renewed Middle East uncertainties hit sentiment. The broader crypto market moved in line, with major altcoins all trading lower on the week. On the week Bitcoin lost 4.6%.
Key SPX Technical Levels to Watch
Support near 7,500, 7,440-500, and 7,330-35. Resistance near 7,600, 7,645, and 7,740-50.
In any case, as we always do at TheTechTrader.com, we’ll “Trade What We See, Not What We Think.”
— HARRY BOXER, THE TECHNICAL TRADER | www.thetechtrader.com
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