Thursday,
May 30, 2024
Market recap
Dow Jones
38,441.54
-411.32 (-1.06%)
S&P 500
5,266.95
-39.09 (-0.74%)
Nasdaq
16,920.58
-99.30 (-0.58%)
Top Story
The gold rally has taken a breather – but for how long?
Gold prices reached a record high earlier this month. They have fallen since then, but the drivers behind high demand haven’t moved one bit.
Treasury yields pushed higher and US stocks finished lower on Wednesday
• The 10-year Treasury yield moved back above 4.6%
• Shares of airlines tumbled after American Airlines cut its second-quarter profit forecast, citing weaker pricing power. Meanwhile, retailers like Abercrombie & Fitch and Dick’s Sporting Goods climbed higher after raising sales forecasts.
• The 30-year mortgage rate rose to 7.05% last week, its first increase in four weeks.
What to be on the lookout for today
• The second estimate for second-quarter GDP growth. We’ll also get the weekly update to unemployment claims.
• In earnings, Costco, Dell, Dollar General, Gap, Marvell Technology, and Ulta Beauty will report.
Why have bigger companies held up better in the market?
Whether you’re building an investment portfolio for the first time, or are trying to optimize your existing holdings, you want to know how to pick well. While all investments come with risks, looking at past performance and earnings can help paint a better picture of how a stock, industry or sector is performing.
But there are more ways to slice it, such as big versus small companies. Bigger ones, also known as large-caps (companies with larger market capitalizations), have generally outperformed in the stock market as interest rates rose. Meanwhile, smaller businesses haven’t fared as well. SoFi’s Investment Strategy team breaks down what is behind this dynamic, and what investors need to keep in mind.
Today’s top stories
How AI changes the game for labor productivity. And puts America aheadAI may have already started to change the way you work. But in Europe, AI adoption is much slower. A new report predicts this will have far-reaching consequences for worker productivity.
Read more >> Cooking up your financial independenceCelebrity chef Kristen Kish shares her financial regrets and lessons on SoFi’s YouTube series Richer Live$.
Read more >> What’s a meme stock and why should you care?Remember the GameStop craze? Meme stocks are shares of companies that gain popularity through social media and investing forums, causing rapid price increases. Here’s what you need to know about them.
Read more >>Other news that caught our eye
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More price cuts are coming: Amazon Fresh will slash price tags on 4,000 items, while Walgreens will mark down more than 1,300 products. Target and Walmart have already done so as well to encourage price-conscious consumers.
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Americans started feeling better about the economy for the first time in months, thanks to the strong labor market.
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The International Monetary Fund raised its 2024 GDP growth forecast for China following recent government stimulus and a strong first quarter.
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More energy M&A news: ConocoPhillips agreed to buy Marathon Oil for more than $17 billion to extend its reach across Midwestern shale fields.
Financial planner tip of the day
“There are studies that show that people who write their goals down greatly improve the chances that they’ll succeed at those goals. You may find it valuable (and fun) to take this idea a step further and create a vision board or draw out your goals.”
Brian Walsh, CFP® at SoFi