The S&P 500 managed to reach a fresh all time high at 5.322 during the previous week, supported by the market optimism. This was a gain of 1.5% on a weekly level. There are currently several reasons for such a move. Certainly, economic data is currently one of the most watched by the market. Posted inflation data in the US for April, showed that the inflation was moving in line with market expectations, and a bit lower from the March data. This supported market confidence that the first Fed's rate cut might come in September this year. There have also been notes from some Fed officials that the inflation developments in April are perceived positively, however, the Fed will still need more confidence that the inflation will indeed move to the lower grounds in the coming period. On the other side are relatively strong earnings from some companies included in the index of 500 most valued companies in the US. The information technology sectors continue to lead the market, however, the previous week we have seen that the real estate sector is emerging from the period of high pressure due to high interest rates, which was 2.5% higher during the week.
Overbought momentum continues to be evident for the index. Some relaxation might be possible in the week ahead, however, the market continues to be highly bullish on the US equities.
Overbought momentum continues to be evident for the index. Some relaxation might be possible in the week ahead, however, the market continues to be highly bullish on the US equities.
