The S&P 500 Index saw modest gains during the previous week, closing the month at the level of 5.277. The index marked an increase of 4.8% for the month. The index started the week with some volatility, starting the week with a decline to 5.306, then rebounded and maintained a generally positive trajectory. Still, year-to-date, the index gained 11.3% reflecting strong performance relative to the broader market trends over the year. Certainly, there has been some investor nervousness prior to the release of the PCE data, however, as there were no surprises on this side, the market optimism was brought back. It especially cherished Nvidia`s positive earnings last week, whose price was up by nearly 27% for the month. Another interesting data from the stock market showed that companies included in the S&P 500 repurchased more than $202 billion of their own stocks during the Q1, while analysts are noting that this trend might continue also during the course of this year.
The developments from the last two weeks are showing that the index went out from the overbought momentum. There is probability for a short reversal, but it might take even a few weeks until the index enters into clear oversold momentum. A week ahead brings US non-farm payrolls and unemployment data, which might increase volatility.
The developments from the last two weeks are showing that the index went out from the overbought momentum. There is probability for a short reversal, but it might take even a few weeks until the index enters into clear oversold momentum. A week ahead brings US non-farm payrolls and unemployment data, which might increase volatility.
