A Week of a Mixed Market

What impact did the week have on the market?

• Mixed Market: U.S. stock indexes started the week on a negative note but shifted in a positive direction on Thursday and Friday. Results varied widely, with the NASDAQ posting a 2.5% total return, the S&P 500 adding 0.3%, and the Dow slipping 1.0%.

The yield of the 10-year U.S. Treasury bond rose for the second week in a row, climbing to the highest level in two and a half months. The 10-year bond closed around 3.80% on Friday—up from 3.46% a couple of weeks earlier, yet well below a recent peak of 4.07% on March 2..

Source: Seeking Alpha

• Fed Division: Minutes released on Wednesday from the most recent policy meeting of the U.S. Federal Reserve showed that officials were divided as to whether another interest-rate increase will be needed when they meet again on June 13–14. At their early May meeting, some officials said they expected that an economic slowdown would remove the need for another rate hike, while others suggested another increase is likely.

Source: CNN

Ongoing Inflation:

?Consumer prices climbed at a somewhat quicker rate in April than in March, breaking a previous trend of inflation reduction, according to the Federal Reserve's preferred inflation gauge. In April, the Personal Consumption Expenditures Price Index increased at a 4.4% annual rate, up from 4.2% in March. Core inflation reached 4.7% in April, compared to 4.6% in March, excluding volatile food and energy prices. ?

Source: The Market Watch

Debt Ceiling Deal: US President Joe Biden and Republican lawmakers reached an agreement to cut spending and raise the debt ceiling. The agreement raises the debt ceiling for two years and cuts spending over the same period. It also includes recovering unused COVID-19 funds and expediting the approval process for some energy projects and some additional business terms for food aid programs for poor Americans.

Source: CNBC

Erdogan Victory: Turkish President Recep Tayyip Erdogan won the run-off in the Turkish presidential elections over his rival, Kemal Kilicdaroglu, according to the Supreme Elections Committee. Ahmed Yanar, head of the committee, announced that "Erdogan won the second round of the presidential elections after receiving 52.15% of the total production, compared to less than 48% for his rival Kamaljadoglu."

Source: Aljazeera

Check out the Top 5 stocks in each industry:

What to expect for the markets next week?

• Jobs update ahead: A monthly U.S. labor market update due out on Friday will show whether the strong growth recorded in April carried over into May. In April, the economy generated 253,000 new jobs, exceeding most economists’ expectations and rising from 165,000 in the previous month. May’s unemployment rate slipped to 3.4%, the lowest level since 1969.

• Earnings Report: Salesforce, HP, Broadcom, Dollar General, Lululemon Athletica, Macy’s, and Dell Technologies will report earnings next week.