U.S. stocks are off and running for the week, led by early gains in the DOW and S&P 500. At the halfway point of the Wall Street session, the DJIA DOW (+186), S&P 500 SPX (+44), and NASDAQ (+205) are all in the green. The NASDAQ is attempting to pare May’s losses and is trading beneath the 14,000 handle.
It’s the final trading week of May and the equities markets are showing some strength. The U.S. economic calendar is vacant, with the only event worthy of note being the Chicago Fed National Activity Index (April). The figure came in at 0.24, well off March’s level of 1.71. While this report is far from a market mover, it does suggest that economic conditions in the midwest may be cooling off a bit.
On the bond markets, this morning’s 3 and 6-month T-Bill auctions came in flat. Yields held firm at 0.015%(3-month) and 0.030% (6-month), with debt traders showing little interest. All in all, it’s a quiet financial news day as we head toward May’s finish line.
Let’s take a look at how U.S. large caps and the DOW are faring.
DOW Rallies To Open Week
It’s been an interesting day for the Dow Jones Industrial Average. Traders have piled into large-cap stocks, running the index back above 34,000. For now, the long-term bullish trend is intact and positioned to extend gains.
Overview: Right now, the DOW and U.S. stocks appear to have completed May’s retracement. Prices remain near all-time highs and are in position to drive higher by Memorial Day. Until we see a shift in Fed monetary policy or another round of crippling COVID-19 lockdowns, it’s long-or-nothing for U.S. large caps.