US indices continue to hover around all-time highs even as AI goliath Nvidia (NVDA US) experiences a rare pullback. Recent stock strength will be tested on Friday when they receive their inflation read with the personal consumption expenditures price index, an inflation measure the Federal Reserve watches closely. It is expected that there will be no meaningful monthly increase in May. On the stock front, Nike warned that it would cut its fiscal 2025 guidance as it posts the slowest annual sales gain in 14 years; the stock was down ~11% in late trading, another concern for an already “wobbly” retail sector – we’ve discussed Nike (NKE US) several times over recent months, given it was on our Hitlist for the International Equities Portfolio, with our last update highlighting caution ahead of the overnight quarterly.
- For most of 2024, we had initially targeted the 5500 area for the S&P500 Index; hence, we’re now neutral, with the level achieved in June.
