Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Wall Street: what comes next for US equity markets perched at record highs?

Last week, the Nasdaq and S&P 500 extended their winning streaks to five weeks, driven by NVIDIA's impressive earnings report which sent its share price soaring by 15%.

Video poster image

Last week, the tech-heavy Nasdaq and the S&P 500 extended their winning streaks, marking a fifth straight week of gains. This was largely driven by NVIDIA's impressive earnings report, which saw its share price surge by 15%.

As we enter the last week of May, the Nasdaq is up a phenomenal 7.84% MTD, on track for its sixth month of gains from seven from its October low. The S&P 500 cash is up 5.34%, and the Dow Jones has gained 1253 points or 3.32%. As a side note, the tech sector's outperformance may result in some rebalancing month-end flows later this week from real money accounts.

The gains for benchmark indices this month have come despite hawkish Fed Speak and resilient data, which has seen the rates market scale continue to scale back expectations of Fed rate cuts. After pricing in ~170 bp of Fed rate cuts as of mid-January, there are now just 33 bp of rate cuts currently priced for 2024.

However, with earnings season winding up, macro data will likely retake the spotlight. This week's key macro events will include speeches by several Fed officials, CB Consumer Confidence, personal income and spending data, and the Fed's preferred measure of inflation, the Core PCE Price Index.

What is expected from Core PCE inflation

Date: Thursday, 31 May at 10.30pm AEST

Until recently, headline and core PCE price inflation trended lower from its September 2022 highs. However, in March, headline PCE inflation increased to 2.7% year-on-year (YoY) from 2.5% prior, above the 2.6% expected. Core PCE inflation remained stable in March at 2.8% YoY, compared with market expectations for a fall to 2.7%.

Comforted by the release of cooler CPI and PPI data earlier this month, which contain components that feed through into PCE inflation, headline PCE inflation is expected to remain stable at 2.7%. The Fed's preferred measure of inflation, the Core PCE, is also expected to remain stable at 2.8%.

While the bar to rate hikes remains high, the Fed has communicated it wants to see inflation make further progress towards its inflation target before it feels comfortable cutting rates.

PCE price index MoM chart

Source: TradingEconomics

S&P 500 technical analysis

While the S&P 500 was able to make a new high last week, it left a loss of momentum weekly candle in place, which reflects some indecision. Additionally, the weekly close was below the weekly trendline resistance at 5310ish, drawn from the January 2022 high of 4818, which picks up the March 5264 high.

As such, we remain neutral on the S&P 500, needing a weekly close above the weekly trendline resistance at 5310/25 to move to a more positive bias. On the downside, a sustained break below 52100/5180ish would indicate that the S&P 500 has topped and that a deeper decline is underway.

S&P 500 weekly chart

Source: TradingView

Nasdaq technical analysis

Last week's surge in the Nasdaq cash above the weekly trendline resistance at 18,650/70ish, coming from the 16,764 high of November 2021 and which picks up the March 18,464 high, opens the way for the Nasdaq to extend its gains towards 19,200/300.

On the downside, a weekly close below the March 18,464 high and then below 18,000 would indicate that the rally has run its course.

Nasdaq weekly chart

Source: TradingView
  • Source: Tradingview. The figures stated are as of 27 May 2024. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market.

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.