It was a down and up week for the S&P 500 as it closed at 7,473, just shy of its 14 May record closing high of 7,501. On Friday 15 May the S&P 500 commenced a string of three consecutive down days pressured by rising bond yields after a series of economic reports last week (CPI/PPI/Consumer Sentiment) indicated that inflation may be reigniting. On Tuesday the 30-year U.S. Treasury yield briefly topped 5.19%, marking its highest level in nearly 19 years, while the 10-year Treasury yield hit 4.687% to reach its highest level since January 2025. On Wednesday stocks rallied as oil prices and bond yields retreated, snapping that three-day losing streak for the S&P 500 with a daily gain greater than 1%. After Wednesdays closing bell Nvidia (NVDA) breezed past Wall Streets expectations for earnings and guidance, in addition to announcing a hike in its quarterly cash dividend to 25 cents. But investors have come to expect the chipmaker to beat estimates and raise its outlook amid the AI boom. NVDA fell approximately 3.5% over Thursday and Friday, but the S&P 500 shook that downward move off and instead rallied to make it three consecutive days up. On Friday we also saw Kevin Warsh become the 17th Fed chair in a rare White House swearing-in, the first such ceremony for a Fed chair since Alan Greenspan in 1987. From a technical perspective it was nice to see that six-day (3 down/3 up) S&P 500 cycle, with it now about 0.5% from a new record high. For next week the markets are closed on Monday for Memorial Day, on Thursday we get Core PCE inflation and 2nd quarter GDP, and on Friday we close out May with hopefully back-to-back monthly gains. For TSP TIPS the Performance Ranking remains the same (C/I/S), but the Composite Score of the S fund dropped to 85 as its Tuesday close of $107.16 was the lowest closing price over the previous two weeks, since 4 May. As discussed in last weeks update, the plan is to send out our TSP TIPS monthly investment mix after the market close on Wednesday 27 May, for reallocation before noon on Thursday 28 May. This allows us to fine-tune all three models second investment mix for May with a day to spare.
It was a down and up week for the S&P 500 as it closed at 7,473, just shy of its 14 May record closing high of 7,501. On Friday 15 May the S&P 500 commenced a string of three consecutive down days pressured by rising bond yields after a series of economic reports last week (CPI/PPI/Consumer Sentiment) indicated that inflation may be reigniting. On Tuesday the 30-year U.S. Treasury yield briefly topped 5.19%, marking its highest level in nearly 19 years, while the 10-year Treasury yield hit 4.687% to reach its highest level since January 2025. On Wednesday stocks rallied as oil prices and bond yields retreated, snapping that three-day losing streak for the S&P 500 with a daily gain greater than 1%. After Wednesdays closing bell Nvidia (NVDA) breezed past Wall Streets expectations for earnings and guidance, in addition to announcing a hike in its quarterly cash dividend to 25 cents. But investors have come to expect the chipmaker to beat estimates and raise its outlook amid the AI boom. NVDA fell approximately 3.5% over Thursday and Friday, but the S&P 500 shook that downward move off and instead rallied to make it three consecutive days up. On Friday we also saw Kevin Warsh become the 17th Fed chair in a rare White House swearing-in, the first such ceremony for a Fed chair since Alan Greenspan in 1987. From a technical perspective it was nice to see that six-day (3 down/3 up) S&P 500 cycle, with it now about 0.5% from a new record high. For next week the markets are closed on Monday for Memorial Day, on Thursday we get Core PCE inflation and 2nd quarter GDP, and on Friday we close out May with hopefully back-to-back monthly gains. For TSP TIPS the Performance Ranking remains the same (C/I/S), but the Composite Score of the S fund dropped to 85 as its Tuesday close of $107.16 was the lowest closing price over the previous two weeks, since 4 May. As discussed in last weeks update, the plan is to send out our TSP TIPS monthly investment mix after the market close on Wednesday 27 May, for reallocation before noon on Thursday 28 May. This allows us to fine-tune all three models second investment mix for May with a day to spare.