S&P 500 Rises in Last 20 Minutes of US Trading – US Market Wrap

Stocks experienced a renewed bout of volatility in the final stretch of May, with the market closing higher amid a rotation between technology and other industries.

After falling nearly 1% amid a selloff in tech megacaps, the S&P 500 recovered to finish with its largest monthly gain since February. Investors betting on tech giants to continue to power gains may be in for a rough ride when other sectors catch up, according to strategists at Bank of America, who said the outperformance of value over growth as market breadth improves could be the next “pain trade.”

Meanwhile, Treasuries extended gains at the end of their best month in 2024, as the core personal consumption expenditures price gauge met expectations, albeit with the smallest increase this year. Furthermore, spending has unexpectedly dropped. For a data-dependent Fed, traders viewed the report as “not quite as bad,” “slightly constructive,” and “marginally dovish.”

The S&P 500 index rose immediately following the release of the data. The gains faded quickly as technology sold off, and the benchmark briefly fell below 5,200. The gauge then recovered as other sectors, such as banking and energy, advanced.