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%.
Softening in the Housing Market
There was a little more softening in the housing market this week. April existing home sales were down 2.4% from March.
Retail Sales Increase
There was an increase in retail sales through April. Retailers sold 0.9% more than the previous month. Taking out autos, retail sales grew by 0.60%.
Sharp Reversal Sends Risk Assets Lower
The massive rally post-Federal Open Market Committee meeting last Wednesday turned out to be a head fake. This week saw significant losses in risk assets.
The Fed Hikes Rates by 50 Basis Points for the First Time Since 2000
The S&P 500 ended the week up 2.8%, with all the gains coming in the last two hours on Wednesday.