The stock market had a very strong May with S&P 500 up 4.96%.  Year to Date the SPX is now up 11.30% (with dividends reinvested).  The market continues to be led by the “Magnificent 7” up 10.38% in May and 21.68% YTD.

The Mag 7 ( NVidia, Apple, Microsoft, Meta, Alphabet, Amazon and Tesla) make up nearly 30% of the S&P 500 and contributed nearly 60% of its return for the month.   NVidia with its new AI semiconductor chips gained 26.88% for the month.   Tesla and Amazon were the only underperformers for the month among the group.

SPX vs SPX (without Mag 7) Year to Date

may 2024 market update graphic 1

Source:  Bloomberg

Notice the SPX without Mag 7 would be up only 2.5% for May and 7% YTD, vastly underperforming the overall index.

may 2024 market update graphic 2

During May, the Technology sector led but was joined by Utilities.  Utilities are thought to benefit from the large electrical needs of AI to power computers, servers, networkers and data usage.