Weekly Market Update | May 30, 2023

The Week on Wall Street

Markets moved in sync last week with perceived movement in debt ceiling talks, weakening early in the week and then surging on news of progress. A solid quarterly report and guidance from a mega-cap technology company helped with enthusiasm.

Overall, the markets were mixed, with the Dow Jones Industrial Average down 1.00%, while the Standard & Poor’s 500 gained 0.32%. The Nasdaq Composite index led, picking up 2.51% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, sank 2.92%.

Debt Talks Dominate

Stocks were weighed down for much of the week by stumbling debt ceiling negotiations, which appeared to reach an impasse at one point. Technology stocks, which have led the market this year, were under pressure as traders began to anticipate the possibility of rate hikes in June and July.

Sentiment turned more optimistic after the release of an above-consensus earnings report and strong guidance from a mega-cap chip giant. The momentum continued into Friday as stocks surged on hopes of a debt ceiling agreement, undeterred by an inflation read that may induce the Fed to raise interest rates further.

A Fed Divided

The minutes of the Federal Open Market Committee (FOMC) May meeting reflected division among committee members over whether further rate increases were necessary, with more than half suggesting that they were ready to pause. Those members supporting additional rate hikes said inflation was moving too slowly toward the Fed’s two percent target inflation rate.

The minutes also reaffirmed the Fed’s expectation of a recession beginning around the fourth quarter. In comments last Wednesday, Fed governor Christopher Waller manifested this division, saying that it was a toss-up as to whether rates should be raised, suggesting that he could support a rate hike in June or wait on voting for an increase until July’s meeting.

Key Economic Data

Tuesday: Consumer Confidence.

Wednesday: Job Openings and Labor Turnover (JOLTS).

Thursday: Automated Data Processing (ADP) Employment Report. Jobless Claims. Institute of Supply Management (ISM) Manufacturing Index.

Friday: Employment Situation.

Source: Econoday

Companies Reporting Earnings

Tuesday:  HP, Inc. (HPQ)

Wednesday: Salesforce, Inc. (CRM), CrowdStrike (CRWD)

Thursday: lululemon athletica, inc. (LULU), Broadcom, Inc. (AVGO), Dollar General Corporation (DG), Dell Technologies, Inc. (DELL)


Quote of the Week

“I can make it through the rain, I can stand up once again on my own, and I know that I’m strong enough to mend.”

– Mariah Carey

Sources: The Wall Street Journal, May 26, 2023; Treasury.gov, May 26, 2023

Weekly performance for the Dow Jones Industrial Average, Standard & Poor’s 500 index, and NASDAQ Composite is measured from the close of trading on Friday, May 19 to Friday, May 26 close. Weekly performance for the MSCI-EAFE is measured from Friday, May 19 open to the Thursday May 25, close. Weekly and year-to-date 10-year Treasury note yields are expressed in basis points.

Loving Yourself First

The rise of self-care over the past decade has brought attention to the concept of loving oneself – the basic philosophy behind it being that if we love and take care of ourselves with intention, the happier and healthier we’ll be, and all the people in our lives will benefit.

Loving ourselves isn’t always easy. And it doesn’t mean always being overly indulgent, but rather making choices that help support our overall well-being. For some people, that may look like taking time to relax if they have a lot of stress. For others, it can be making a to-do list to organize and accomplish tasks if they tend toward procrastination. It can also mean being more self-aware and cheering ourselves on if we’re often overly harsh or being more introspective and searching for ways to improve if we are myopic about our shortcomings. All these things and many more not mentioned are intentional actions we can take to be our best selves.

Take some time to reflect on the ones you love. Just make sure you don’t forget about the one you should love the most.

Tip adapted from Everyday Health

Grilled Salmon Steaks With Cilantro-and-Garlic Yogurt Sauce


Servings: 4

  • Vegetable oil (for grill)
  • 2 serrano chiles
  • 2 garlic cloves
  • 1 cup cilantro leaves with tender stems
  • ½ cup plain whole-milk Greek yogurt
  • 1 Tbsp. extra-virgin olive oil
  • 1 tsp. honey
  • Kosher salt
  • 2 12-oz. bone-in salmon steaks
  1. Prepare a grill for medium-high heat; oil grate. Remove and discard seeds from 1 chile. Purée both chiles, garlic, cilantro, yogurt, oil, honey, and ¼ cup water in a blender until smooth; season well with salt. Transfer half of sauce to a small bowl and set aside for serving.
  2. Season salmon steaks lightly with salt. Grill, turning once or twice, until flesh is starting to turn opaque, about 4 minutes. Continue to grill, turning often and basting with remaining sauce, until opaque all the way through, about 4 minutes longer. Serve with reserved sauce alongside.

Recipe adapted from bon appetit

How to Self-Diagnose Bad Shots

Have a friend film your swing: This will help you learn what’s going on and see if you have any tendencies during the round. Alignment and tempo are two of the biggest contributing factors to bad shots. So check those first and then look at take away, transition, and follow-through.

Track your rounds: This will make it clear where you are struggling  and where you’re doing well. If you really track your game. Notate which side of the fairways and greens you missed on.

Focus on your routine: The better your routine on the course, the less likely you are to hit really bad shots and question everything. Your routine will help with alignment, manage your swing thoughts, and focus in the target.

Tip adapted from theleftrough.com

Be On Alert For IRS Scams

The Internal Revenue Service is on a constant lookout for tax-related scams. In most cases, “phishing” scams are bogus phone calls and emails that claim to come from the IRS.

Remember, the IRS will never:

  • Call you without mailing an official notice first.
  • Demand that you immediately pay your taxes over the phone.
  • Take a debit or credit card number over the phone.
  • Threaten to call law enforcement or immigration services to arrest you for failure to pay.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov


Photo of the Week

Pink flamingos, Celestun, Mexico


Financial planning and investment advisory services offered through Cleveland Wealth, LLC, a Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified wealth advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.