The Holiday Stock Market Prepares to Open High
The stock market is about to open after a long weekend and could open high and stay high through the end of the month.
Memorial Day kept the stock market on hold, and an extra day of inactivity for traders may just make them want to engage in frenzied trading today.
The stock market indices closed up on Friday and have stayed closed since then. As they prepare to open for Tuesday morning for the first trading session of the week, the Dow Jones is up just 0.01% from the previous day of trading.
The S&P 500 is up even more, though, with an increase of 0.70%. The Nasdaq Composite was higher, with an increase of 1.10%, led by Innovative Eyewear Inc, with a gain of 428%.
The stock market should close out the month high, with some record or near record highs, despite a tumultuous previous week. The recent FOMC meeting minutes revealed that inflation was staying high and was creating a hawkish sentiment among the Federal Reserve members, but the market is still moving forward.
Expect a Busy Week of Trading
Overall, the Dow Jones has gained 3.3% for the month, and the S&P 500 has grown by 5.3%. The Nasdaq Composite outpaced them all, with about 8% in gains for May.
With all of these gains, we expect the end of May to be very busy for trading and the markets to close with overall gains. These may be some of the best gains for a month that we have seen in a while, which could spur even better trading in June.
Coming up this week, several of the FOMC members will be speaking, discussing inflation primarily and the possibility of interest rate cuts. We anticipate that no cuts will be announced and will likely not come this year at all.
The HPI (house price index) data will be released this week, indicating more inflation movement and helping investors see where housing costs sit. CB Consumer Confidence will also have new data released, and that will be a fairly strong indicator of inflation that could dramatically move the market this week.
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