The S&P 500 and Nasdaq hit fresh record highs last week and closed 1.6% and 3.2% higher, respectively. Other major indices logged declines last week, though. The Dow Jones Industrial Average declined 0.5% and the Russell 2000 fell 1.0%.<\/p>\n\n\n\n
Gains in the mega cap space played an integral role in index-level gains for the S&P 500 and Nasdaq. The equal-weighted S&P 500 slid 0.5% this week while the Vanguard Mega Cap Growth ETF (MGK) jumped 3.4%. Apple (AAPL) was a significant driver of the advance in mega caps, jumping 7.9% and hitting record highs after introducing “Apple Intelligence” for the iPhone at its Worldwide Developers Conference. Broadcom (AVGO), another top performing mega cap, surged 23.4% after a better-than-expected earnings report, outlook, and a 10-for-1 stock split announcement. Another notable mega cap company, Adobe (ADBE), delivered a better than expected earnings results and guidance, gaining 12.9% last week.<\/p>\n\n\n\n
The three aforementioned companies helped propel the S&P 500 information technology sector to a 6.4% gain. The next best performing sector was real estate, gaining 1.2%. On the flip side, the energy (-2.3%) and financial (-2.0%) sectors logged the biggest declines.<\/p>\n\n\n\n
The May Consumer Price Index (CPI) reflected some welcome deceleration on a year-over-year basis with total CPI declining from 3.4% to 3.3% and core CPI slowing to 3.4% from 3.6%.\u00a0 The May Producer Price Index (PPI) showed a 0.2% month-over-month decline in total PPI while core PPI was unchanged from the prior month.\u00a0Driven in part by the inflation data, the\u00a0yield on the 10-yr US Treasury declined 22 basis points this week and the 2-yr note yield declined 20 basis points to 4.69%. <\/p>\n\n\n\n
The Fed met last week and decided to leave the target range for interest rates unchanged at 5.25-5.50%, as expected. The directive reiterated that, “The Committee does not expect it will be appropriate to reduce the target range until it has greater confidence that inflation is moving sustainably toward 2 percent.” In a bit of a surprise, the Fed\u2019s updated \u201cdot plot\u201d showed a median estimate of only one rate cut this year versus three at the time of the March projections.<\/p>\n","protected":false},"featured_media":15928,"template":"","categories":[479,666],"tags":[696],"class_list":["post-17637","opinion-article","type-opinion-article","status-publish","has-post-thumbnail","hentry","category-research-en","category-financial-analysis","tag-informe-semanal-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/opinion-article\/17637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/opinion-article"}],"about":[{"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/types\/opinion-article"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/media\/15928"}],"wp:attachment":[{"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/media?parent=17637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/categories?post=17637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/tags?post=17637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}