Stocks Mostly Higher Last Week on Tech and AI Rally

Wall Street rode a rally in tech and AI stocks for most of last week. The end of the week saw a bit of a downturn, but not enough to keep the benchmark indexes listed here from closing the week higher. The large caps of the Dow led the indexes, followed by the Russell 2000, the Global Dow and the S&P 500. The Nasdaq inched higher. Despite a dip at the end of the week, crude oil prices posted a second straight weekly gain. Ten-year Treasury yields rose higher after positive economic data prompted the Federal Reserve to refrain from cutting interest rates in the third quarter. The market sectors mostly advanced last week, led by consumer discretionary, financials and communication services. Utilities declined, while information technology ticked lower.

Existing Home Sales Declined in May

Sales of existing homes declined 0.7% in May and 2.8% over the last 12 months. Unsold inventory sat at a 3.7-month supply at the current sales pace, up from 3.5 months in April and 3.1 months in May 2023. The median price for existing homes in May was $419,300, the highest price ever recorded, an increase of 3.1% from April ($406,600) and up 5.8% from one year ago ($396,500). According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.87% as of June 20, down from 6.95% the prior week but up from 6.67% one year ago.

Eye on the Week Ahead

The final and most complete edition of the gross domestic product report for the first quarter is out this week. Thus far, data has shown that the economy accelerated at an annualized rate of 1.3%. Also available this week is the report on personal income and outlays for May. April saw income rise by 0.3%, while consumer prices increased 0.3% for the month and 2.7% over the 12 months ended in April.