Pre-Market Report – Monday 19 May: US markets firm | Moody's downgrades US

Another good night on Wall St despite bearish headlines. S&P 500 up 0.7%. Nasdaq up 0.52% and the Dow up 332 points. Closing on the high. Michigan consumer sentiment dropped on Friday for the 5th month in a row to a 10Y low. Inflation expectations hit 4.6%. The highest reading since the measure began in 2008. Sounds bad but both numbers are sentiment based, not real data. The rise in stocks was attributed to continued momentum and optimism surrounding the US/China trade deal. Pretty much every newswire is saying the rally will soon run out of steam due to ‘future’ economic data turning sour. The market ploughs ahead. The key number quoted is the ‘effective’ US tariff on imports. Following Monday it’s down from 24% to 14% but still well above the pre-Trump level of 2.3%.

SPI down 7 - US Futures fall on Sunday - Dow down 263 - Nasdaq down 143

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