The Dow Jones Industrial Average and S&P 500 ended higher on Friday, with the Dow experiencing its largest daily percentage gain since November 2023. This late sharp rally, driven by month-end repositioning, contributed to strong gains for all three major indexes in May. The S&P 500 saw almost all sectors close higher, with the energy sector up 2.5%. However, the technology sector ended slightly in the red.
“We definitely saw a spike in volume toward the end,” noted Joe Saluzzi, co-founder and co-head of Equity Trading at Themis Trading, citing month-end repositioning as a likely cause. Trading volume on U.S. exchanges reached 14.60 billion shares, surpassing the 20-day average of 12.56 billion. The U.S. personal consumption expenditures (PCE) price index rose 0.3% last month, aligning with March’s unrevised gain and indicating slowed consumer spending. Despite a lack of surprising inflation data, underlying consumer strain remains a concern, according to Carol Schleif, chief investment officer at the BMO family office. Futures traders increased bets on potential rate cuts by the Federal Reserve in September and December.
On Friday, the Dow rose 574.84 points (1.51%) to 38,686.32, the S&P 500 gained 42.03 points (0.80%) to 5,277.51, and the Nasdaq Composite fell slightly by 2.06 points (0.01%) to 16,735.02.