New High Hopes: AI

The markets were closed Monday in observance of the Memorial Day holiday. Stocks finished last week mixed. Outside of the tech sector, bears had a minor victory as the debt ceiling drama weighed heavily on investor sentiment.  Even so, the S&P closed the week near a weekly 52 week closing high and is now up 10.3% year to date.

The value biased, Dow Jones Industrial average remained relatively weak amid underweights in the technology sector.  This industrial average hit a ten-week low while dropping below its 200-day moving average and now sits up about 1% year to date.

Positive late-week rumors regarding a limited debt ceiling deal sent tech stocks soaring ahead of the long weekend. The Nasdaq made a fresh recovery high, riding the semiconductor led AI wave.  The S&P 500 closed at its highest level in nine months on Friday.

 

Early in the weekend, President Biden and House Speaker McCarthy announced they had agreed on the “Fiscal Responsibility Act”, which suspends the debt limit until 2025 and caps discretionary spending for the next two years with very modest growth effects. The legislation must still pass the House and Senate.  The House will vote on the bill on Wednesday.  The Senate will vote by Friday.

 

The OHFG YouTube channel is currently undergoing some placement modifications.  For now, “Stock Talk” can be found by clicking on this link and subscribing to its own content. https://www.youtube.com/@OakHarvestStockTalk.  Alternatively, you can type “Stock Talk with Chris” in the You Tube search box, and you should be directed to the new content.  The investment content will be a “sub-channel” under our current OHFG channel.  Please subscribe if you are interested.

Click here to watch Oak Harvest Weekly Stalk Talk: Taxes and the IRS, Bigger Government Lower Investment Returns

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