The S&P 500 rebounded back with an up week, posting a gain of 0.65% and closing Friday at 7,431. On Monday the S&P 500 clawed back some of last weeks tech rout losses, but on Tuesday chip stocks sold off again, dragging the S&P 500 lower to where we started the week. Before Wednesdays open the Bureau of Labor Statistics Mays core consumer price index reading came in at 0.2%, below the 0.3% estimate. Meanwhile, Mays headline annual inflation rate climbed to 4.2%, marking its highest level since April 2023 and representing the third consecutive monthly increase. Wednesdays open saw a ramp-up in tensions with Iran, and chip stocks came under pressure again with shares of Micron Technology, Advanced Micro Devices and Broadcom falling for the fourth day in five. Overall, the Dow tumbled 1.87%, the S&P 500 fell 1.62%, and the tech-heavy NASDAQ 100 lost 1.98%, its lowest level since 6 May. On Thursday the markets were flatlining until noon, but then thanks to a rebound in chip stocks and the White House signaling that a peace deal with Iran was near, the markets reversed Wednesdays losses as the Dow gained 1.86%, the S&P 500 gained 1.75%, and the NASDAQ 100 gained 3.29% (whew!!). Friday was all about the SpaceX IPO, the largest ever at over $2 trillion, and making Elon Musk the worlds first trillionaire. To put a trillion into time terms, 1 million seconds is about 11.5 days, 1 billion seconds is about 31.7 years, and 1 trillion seconds is about 31,700 years, about 1,000 times bigger than a billion. And lets not forget, the small-cap Russell 2000 index rose 1% on Friday to hit a new all-time closing high. From a technical perspective one sell signal we follow is to note when a security closes below its previous two weeks closing low. For instance, between 26 May and 5 June the S&P 500s closing low was 7,383 on 5 June. On this Wednesday, 10 June, the S&P 500 closed at 7,267, i.e. generating this sell signal. The same was true for the NASDAQ 100. Fortunately, we rebounded on Thursday, and now were looking for a possible bullish breakout to the upside. For next week theres not much on the economic calendar, but we do have the first Fed meeting/interest rate decision under Fed Chair Warsh. For TSP TIPS we have seen some changes in Composite Scores (CS) and Performance Rankings (PR) this week, and the S fund ranks at the top of both Leaderboards. One of the big changes is that both the S and I fund prices are above their 20 day Moving Averages (MA), and both MAs are sloping upward. As such we recommend the following new investment mixes. Finally, Mutual Fund Window TIPS ProFunds Ultra NASDAQ 100 (UOPIX) was sold on Thursday, after its purchase on 9 April, returning to a 100% cash position.
The S&P 500 rebounded back with an up week, posting a gain of 0.65% and closing Friday at 7,431. On Monday the S&P 500 clawed back some of last weeks tech rout losses, but on Tuesday chip stocks sold off again, dragging the S&P 500 lower to where we started the week. Before Wednesdays open the Bureau of Labor Statistics Mays core consumer price index reading came in at 0.2%, below the 0.3% estimate. Meanwhile, Mays headline annual inflation rate climbed to 4.2%, marking its highest level since April 2023 and representing the third consecutive monthly increase. Wednesdays open saw a ramp-up in tensions with Iran, and chip stocks came under pressure again with shares of Micron Technology, Advanced Micro Devices and Broadcom falling for the fourth day in five. Overall, the Dow tumbled 1.87%, the S&P 500 fell 1.62%, and the tech-heavy NASDAQ 100 lost 1.98%, its lowest level since 6 May. On Thursday the markets were flatlining until noon, but then thanks to a rebound in chip stocks and the White House signaling that a peace deal with Iran was near, the markets reversed Wednesdays losses as the Dow gained 1.86%, the S&P 500 gained 1.75%, and the NASDAQ 100 gained 3.29% (whew!!). Friday was all about the SpaceX IPO, the largest ever at over $2 trillion, and making Elon Musk the worlds first trillionaire. To put a trillion into time terms, 1 million seconds is about 11.5 days, 1 billion seconds is about 31.7 years, and 1 trillion seconds is about 31,700 years, about 1,000 times bigger than a billion. And lets not forget, the small-cap Russell 2000 index rose 1% on Friday to hit a new all-time closing high. From a technical perspective one sell signal we follow is to note when a security closes below its previous two weeks closing low. For instance, between 26 May and 5 June the S&P 500s closing low was 7,383 on 5 June. On this Wednesday, 10 June, the S&P 500 closed at 7,267, i.e. generating this sell signal. The same was true for the NASDAQ 100. Fortunately, we rebounded on Thursday, and now were looking for a possible bullish breakout to the upside. For next week theres not much on the economic calendar, but we do have the first Fed meeting/interest rate decision under Fed Chair Warsh. For TSP TIPS we have seen some changes in Composite Scores (CS) and Performance Rankings (PR) this week, and the S fund ranks at the top of both Leaderboards. One of the big changes is that both the S and I fund prices are above their 20 day Moving Averages (MA), and both MAs are sloping upward. As such we recommend the following new investment mixes. Finally, Mutual Fund Window TIPS ProFunds Ultra NASDAQ 100 (UOPIX) was sold on Thursday, after its purchase on 9 April, returning to a 100% cash position.