Honoring Memorial Day
On this important day, we take a moment to honor the brave individuals who gave their lives in service to our country. While long weekends and time with loved ones are cherished, let’s not forget the families who can’t celebrate in the same way—because their loved ones made the ultimate sacrifice. We owe them our deepest gratitude.
📉 Market Recap: Volatility Returns
Last week, the S&P 500 kicked off on a strong note but quickly ran into resistance, peaking on Tuesday before selling off sharply midweek. The sell-off was likely driven by:
- A poor 20-year Treasury auction
- Rising long-term bond yields
- Renewed concerns over the fiscal impact of the recently passed House tax bill
Though tax cuts may ultimately benefit financial markets, these gains could be delayed until the bond market finds stability.
After strong April and May stock market performance, we’re again approaching lofty market valuations. With the index coming off overbought levels, we expect a period of consolidation in the coming weeks before any renewed upside.
📊 The Week Ahead: Key Data to Watch
Outside of ongoing earnings reports and geopolitical developments, here are the economic highlights we’re tracking in this shortened trading week:
Tuesday, May 28
- Consumer Confidence
Expected: 89.4 (up from last month)
Wednesday, May 29
- FOMC Minutes
Watch for any clues on the Fed's rate path or inflation outlook.
Thursday, May 30
- Initial Jobless Claims
Last week: 227,000 — still a healthy labor market signal. - Pending Home Sales
Expected to slow slightly, but still showing a modest month-over-month increase. - Q1 GDP (Second Estimate)
Forecast: 2.0% growth - PCE Deflator (Fed’s Preferred Inflation Gauge)
- Headline PCE: Expected at 2.2%
- Core PCE: Expected to hold at 2.6%
A slight decline in headline inflation would put us closer to the Fed’s long-term target, potentially impacting future policy decisions.
🎥 Don’t Miss: Friday Live Returns
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Thanks for reading,
— HPK Provident Advisors
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Economic forecasts set forth may not develop as predicted