Tough Quarter Ends on a Positive Tone
Equities staged a strong rally off their monthly lows as quarter-end rebalancing forces drove the action. As target date fund assets under management have grown, this has created a mean reverting force at quarter end.
Oil prices dipped over the week
We saw a little bit of a reprieve in gas prices this week. The 8% dip in the price of a barrel of WTI Crude Oil from $106.04 a week ago to $98.15 has not been fully reflected in the prices we pay at the pump.
Inflation Changes Everything
A week ago, the anticipation of a lower-than-expected Consumer Price Index (CPI) print was the foundation of optimism. The S&P 500 was three weeks removed from its lows and about 6% higher.
Data from the Employment Survey for May was released this week. The job market continues to be tight. Nonfarm payrolls increased by 390,000 and payrolls were up 65,000 more than expected.
Stocks Rally to End the Month Positive
The S&P 500 finished the month up just 0.2%, but at one point the deficit was greater than 5%.