Our latest weekly market review we look at the momentum in the market, which has turned positive (unless you hold Crypo) starting with the US, Europe, Asia and Australia.
The big economic news on Friday from the US was that real consumer spending rose in April by the most in three months. This helped to push the S&P 500 Index to its biggest weekly gain since March.
At first glance, this may be seen as a sign of resilience on the part of US consumers despite the highest inflation rates since the early 1980s. However, look more closely and it’s not encouraging that consumers are having to dig deeper into their pockets to finance that spending with the personal saving rate dropping below 5% for the first time since 2009.
Annual inflation remains three times higher than the Fed’s 2% target and helps explain why policy makers are seen pressing on with half-point hikes in interest rates in coming meetings.
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