Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 1.6%, the S&P 500 was up 1.9%, and the NASDAQ rose 2.0%. Foreign stocks (MSCI EAFE) were also up, rising 0.8%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.39%. (Data source: Wall Street Journal)
Tech Leads the Way, Earnings Remain Strong
Technology was the best-performing sector in May, up 10.2%, leading the way. Earnings for many tech companies also beat estimates this past quarter as 6 of the Mag 7 companies beat estimates. The only one who missed earnings estimates was Tesla and its stock was still up over 20% for the month of May. AI continues to be the focus of the tech sector, as Microsoft, Meta, Google, and Amazon reaffirmed their capital expenditures for the year at over $330 billion for AI. Tech had a rough first 4 months of the year, so a strong May was a welcomed sight for investors.
Best May for S&P 500 Since 1990
Markets had a historically strong May as the S&P 500 was up nearly 6%. The old Wall Street adage of “Sell in May and go away” did not come true this time around as investors pushed markets higher. This was the 7th time since 1980 when we saw a 5%+ gain in the month of May for the S&P 500. The average return of the next 12 months in those 6 other instances was 19.9% with all 6 also being positive. Time will tell if history repeats itself.
Palantir Stock Rises as Government Involvement Increases
Palantir stock has risen by over 500% in the past 12 months and was up nearly 8% on Friday. This comes as Palantir’s AI tool Foundry is becoming popular with the Trump administration in their efforts to crack down on waste within the government. The company has also had a few engineers leave to join the D.O.G.E. team which has strengthened the relationship. Investors will continue to watch to see how the relationship continues as Elon Musk takes a lesser role. (CNBC)
If you have any que
What is the estimated total amount of investment in AI expected to be in 2025 in the United States? (Scroll Down for Answer)
- $429 billion
- $471 billion
- $512 billion
- $549 billion
Answer:
2. $471 billion. Estimates are the U.S. will lead the way in AI expenditure for 2025. Companies will continue to spend on AI and investors have rewarded those that do as well.
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