Market Recap 5/16/24


Dow -38.62 at 39869.38, Nasdaq -44.07 at 16698.32, S&P -11.05 at 5297.10

The major indices extended further into record territory today. The S&P 500 was up 0.3% at its high, the Nasdaq showed a 0.3% gain at its best, and the Dow traded above 40,000 for the first time at its high, sporting a 0.4% gain.

Participants were lacking conviction, though, even when the market was at intraday highs. Market breadth was mixed through the entire session, skewing more negative by the close. Decliners led advancers by an 11-to-10 margin at the NYSE and the Nasdaq.

The major indices all closed with modest losses after early gains faded in the afternoon. The late pullback was driven in part by a sense that stocks are due for a cooldown after reaching fresh all-time highs.

A slight rise in market rates also contributed to the modest pullback in equities. The 10-yr note yield settled two basis points higher at 4.38% and the 2-yr note yield settled five basis points higher at 4.79%.

Ten of the 11 S&P 500 sectors registered declines, but like index-level moves, the losses were relatively modest. None of the sectors fell more than 0.8%. The consumer discretionary sector was the worst performer, dropping 0.8%, followed by the materials sector, which closed 0.7% lower.

Tomorrow we have monthly options expiration which can sometimes lead to volatility.

Crypto is basing and may be getting set for another leg higher. Good for IBIT. I’ll keep you posted if I see anything else.

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