May Gains, Mixed Movers, and Cautious Futures Amid Global Uncertainties

Image Source : Krish Capital Pty Ltd

Market Update:  In May 2025, US stocks posted strong gains. The S&P 500 rose about 6.1% to 6.2%, its best monthly gain since November 2023. The Nasdaq led with a 9.6% to 9.9% rise, driven by strong tech earnings despite tariff concerns. The Dow advanced 3.8% to 3.9%, marking its best month since January 2025.

Market Movers:  On Friday, Ulta Beauty (ULTA) surged nearly 11.8%, followed by Zscaler (ZS) and MP Materials (MP), each up about 9.8%. Sunrun (RUN) and Universal Corp (UVV) also gained over 7%. On the downside, Summit Therapeutics (SMMT) dropped 30.5%, Gap Inc. (GAP) fell 20.2%, and Regeneron (REGN) declined 19%. Newsmax (NMAX) and Ambarella (AMBA) also saw sharp losses.

Dollar Commentary:  The US Dollar index (DXY) is set for its fifth straight monthly decline, pressured by easing inflation and a cautious Fed outlook. The dollar remains below the key 100 level, reflecting expectations of a patient Fed amid global uncertainties.

Bonds Commentary:  Treasury yields fell as inflation cooled and demand for safe assets rose amid tariff worries. Bond markets stay sensitive to inflation data and Fed signals, with investors watching upcoming ECB and Bank of Canada decisions.

Commodities Update:  Oil prices declined on expected supply increases from OPEC+, pushing prices near four-year lows around $60 per barrel. Geopolitical tensions offered some support. Gold prices paused after reaching overbought levels in late April, maintaining its core uptrend amid balanced safe-haven demand and easing inflation.

Futures Market:  US index futures pulled back modestly, with S&P 500 futures down about 0.68% near 5,871, Nasdaq futures down 0.79%, and Dow futures down 0.58%. Investors are digesting mixed data and awaiting central bank updates, while geopolitical and tariff risks keep sentiment cautious

Stocks recovered from a sluggish start on Friday, with the major U.S. markets finishing mixed and barely changing. The S&P 500 declined by just 0.50 points, or 0.01%, ending the session at 5,911.68. Technical analysis shows the index is near a confluence zone that previously served as resistance, indicating a potential period of consolidation before a significant move. Additionally, the formation of a golden cross between key moving averages suggests a possible shift toward a more bullish outlook, which could provide support in the near term. Support levels are projected around 5,777, with resistance near 6,047.