Weekly Market Review & Analysis For May 23, 2022

The S&P 500 market has snapped the seven-week losing streak over this week's rally, rising 6.6 percent after it hit its most down level since March 2021 in the previous week's trading session. With a 6.8 percent gain, the Nasdaq performed slightly better than the Dow Jones, which posted a +6.2% percent and barely snapped its longest losing streak since 1932.

The initial two days of the week witnessed some heavy volatility; however, the market bounced powerfully after the index managed to stay above the low of last week's Tuesday trading session.

All eleven index sectors ended the week with positive numbers, including the consumer discretionary with +9.2 percent was the sector in the lead after a poor performance in the previous month. In May, the sector has reduced its losses to 5.6 percent, primarily due to increased retail stocks after inflation worries subsided. The strength of consumer spending drove many of these stocks to their lowest levels since the beginning of the year. However, the past few days have seen renewed interest in retailers hoping that the worst of the recession will be over.

Many mega cap-stacks names performed some heavy lifting, with the names like Apple and Tesla, along with NVIDIA being a part of the rally in the second part of the week's session. The trio grew between 8.3 percent and 14.5 percent.

Despite the market weakening recently, the rebound in the stock market obscured another impressive performance by the energy sector, which gained 8.1 percent, extending its advance in May to 16.9 percent. Crude oil was back to its high in May by climbing to $115.08/bbl with a $4.72 gain, or 4.3 percent, to close the week.

U.S. Treasuries registered their third straight week of gains, pulling some muscle from the presumption that the Federal Reserve could halt its interest rate hikes in September. The Ten-year note yield finished the week at 2.73%.

The exact cause of the first week of bullishness ever since the end of March isn't entirely specific. However, all price action indicates the possibility of a continuous upside movement next week.