Looking back at April, along with continued strong US economic data, geopolitical conflicts brought greater uncertainty to inflation. Federal Reserve officials continued to release “eagles,” and market expectations for the Fed's interest rate cut were drastically lowered. The three major US stock indices may end the previous five-month continuous upward trend.
Looking ahead to May, the market is under heavy pressure due to the combined effects of tight geopolitics, uncertain profit performance, increased inflation, and seasonal factors.
“Sell in May and Go Away” — the saying comes up at this time of year, but market opinion suggests that if May records an upward trend, it could send a positive signal for the rest of the year's performance.
Since 1982, when May performed well (with returns between 6.5% and 9.5%), there is a 90% chance that the upward trend will continue, with an average increase of 13% for the whole year.
As far as the market is concerned, as we enter May, major financial events will unfold, and we will face many tests such as financial reports from big tech giants, the Federal Reserve's interest rate decisions, and heavy economic data.
May 1 (after hours on April 30 EST),$Amazon (AMZN.US)$,$Advanced Micro Devices (AMD.US)$,$Super Micro Computer (SMCI.US)$Until a series of major financial reports will be released;
On May 2, Federal Reserve officials will hold an FOMC monetary policy meeting against the backdrop of the boom in Wall Street and stubborn price pressure. At that time, Federal Reserve Chairman Powell will also hold a monetary policy press conference;
May 3 (after hours on May 2 EST), tech giants$Apple (AAPL.US)$The latest results will be announced; on the same day, the US will announce the non-farm payrolls for April, providing a new reference for observing the US labor market situation;
On May 4, Buffett's shareholders' meeting, known as the “Spring Festival Gala for the investment community,” will open. Investors from around the world will gather in Omaha. At that time, 93-year-old Buffett will be alone in receiving questions from analysts, shareholders, media, etc.;
On May 7, Apple will hold a special event to release the new iPad;
On May 23 (after hours on May 22 EST), it was hailed as “the most important stock on Earth” —$NVIDIA (NVDA.US)$Results will be announced. On the same day, the Federal Reserve will release the minutes of the monetary policy meeting.
In addition, a series of major economic data will be revealed one after another, including PPI, CPI, PCE, etc.
Editor/Somer