Source: Zhitong Finance "Since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%)." With the rebound of the stock market, the old adage "Sell in May and Go Away" seems to have been a bad advice once again. Last month, the S&P 500 index rose 4.8%, the best May performance since 2009. The NASDAQ 100 index rose nearly 6.2%, and the NASDAQ Composite Index rose 6.9%. Goldman Sachs FICC & Equities Trading Division said: "History doesn't really support this saying. Don't sell, leave the market (go on vacation), and enjoy the good times." The rising trend is still to be continued? If history is any guide, it may indicate that the rise of the stock market is not over yet. Looking ahead to the rest of 2024, Scott Rubner, Managing Director of the Goldman Sachs Global Markets Division and tactical expert, pointed out the following historical background for investors. Rubner stated that the S&P 500 index has risen 10.7% year-to-date, and since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%). "Since 1950, the median return of the last 7 months of each year (June 1 to December 31) is 5.4%. In the aforementioned 21 cases, the average performance of the last 7 months increased to 8.1%." Rubner added. Rubner also pointed out that the NASDAQ index has risen for 16 consecutive Julys, with an average return of about 4.64%.
Author: Li Junling.

The US Congress passed a temporary spending bill in both houses on Wednesday to avoid a partial government shutdown next week. The bill has been sent to President Joe Biden for signature. It is worth noting that another battle will be staged later this year. Democrats and Republicans will have to negotiate over annual government funding. The critical deadline is January 1 next year, when they will either raise the national debt ceiling or face the risk of federal government debt defaulting over $35 trillion.

The House of Representatives passed with 341 votes in favor and 82 against, while the Senate passed with 78 votes in favor and 18 against. The current funding is set to expire at midnight on Monday, and this short-term funding bill will maintain the government's annual discretionary funding level at around $1.2 trillion until December 20, ensuring federal employees continue working and government services continue until the November 5 election.

In the House vote, all opposing votes came from Republicans. The bill was passed to avoid a government shutdown after the funds run out. In addition, the bill includes an extra appropriation of $0.231 billion for the Secret Service to address the two assassination attempts on Republican presidential candidate Donald Trump, as well as increased presidential transition funding.

The temporary funding bill secures more time for Congress to negotiate a longer-term funding bill. Last year, Congress passed several temporary bills, known as continuing resolutions, before finally reaching an agreement on the 2024 fiscal year budget. During this process, House Speaker Kevin McCarthy was removed and replaced by Mike Johnson.

Editor/Jeffy