What are the highlights in the stock market for the month? Here is our news round-up of the development in the stock market:
1. The impact of the French presidential election on the stock market
- There is a return to the risk-on assets worldwide because of Emmanuel Macron’s win, which was welcomed by anti-European Union forces and investors.
- The first week of May saw promising earning figures that beefed up the major indices.
2. Tax reform to take effect
- The so-called biggest tax reduction in history has begun to materialize with a recently released plan.
- Although the plan matches the expectations, the stock market appears to be quite disappointed with it. Stock prices were down in early May following the announcement of the tax cut.
3. Key economic indicators down
- Pending property sales decreased despite the rebound in new house sales.
- New unemployment claims dramatically increased to more than 200,000.
- The advance GDP growth, CB Consumer Confidence Index, and the Durable Goods Report failed to meet the targets.
4. Market internals are still positive overall
- Remaining steady is the number of new lows, decreasing to 41 on the NASDAQ and 19 on the New York Stock Exchange (NYSE).
- The Advance/Decline line continues to make all-time-high records. Advancing issues outnumber declining stocks by a 6:1 ratio on the NASDAQ and a 4:1 ratio on the NYSE.
- There is a boost in the average number of new highs, with 246 on the NASDAQ and 252 on the NYSE.
5. Bullish market after the strong performance in April
- For the first time ever, NASDAQ went above the 6,000 level.
- Also posting a new all-time high record is the Russell 2000.
- The benchmark keeps its 50-day moving average stable at the end of the first week of May.
Analysts anticipate the outcomes of the Federal Reserve meeting on the second half of May, where the base interest rate will be decided on. We’ll keep on updating you about the recent developments on Wall Street.