The markets responded favorably following the Federal Reserve’s announcement that interest rates would not be raised next month.
Reports from this past week revealed that the number of job openings is increasing, and the federal deficit and crude oil inventories are shrinking, while consumers are spending more of their hard-earned money.
The Federal Reserve may be on track to raise short-term interest rates later this year, as a favorable jobs report may be signaling the start of anticipated economic growth and inflationary expansion.
After experiencing positive gains the past few weeks, the short holiday week closed with all the major indexes experiencing losses.
Equities were very much a mixed bag last week, as trading was generally quiet ahead of the Memorial Day weekend.
Despite drops in consumer confidence, import and export prices, crude oil inventories, and producer prices, the stock market rallied at the end of the week to post positive gains across the board led by the S&P 500, which closed at an all-time high.
Investor fears returned with a vengeance on Friday, as markets tumbled across the globe.
Despite a weaker-than-expected jobs report released on Good Friday, a day when markets were closed, last week proved to be a positive one for stocks.
The Russell 2000 continued to be more resilient than its domestic large-cap brethren, which ended the week little changed.
An uptick in equities on Friday couldn’t overcome the four-day downdraft across the board that preceded it.