Memorial Day Holiday. LPL Financial and the markets will be closed Monday, May 25, in recognition of Memorial Day. We will resume normal business hours Tuesday, May 26.
Stocks pared earlier losses and opened slightly lower. The S&P 500 index is trying to add to its 3% week-to-date gain this morning ahead of the long weekend, despite an increase in geopolitical tensions and concerns that stocks may have come too far too fast. Global markets were jittery overnight after Beijing announced plans to impose a national security law on Hong Kong. The Shanghai Composite slipped 1.9%, while stocks in Europe were slightly higher, led by Italy and Spain. Gold prices rose while oil fell.
More worries over China. Rhetoric between the United States and China heated up this week, and this morning more concerns are showing. China has moved forward with a sweeping proposal of new security laws that effectively take a firm control over Hong Kong and the continuing anti-government protests, and that take steps to integrate the city with southern China. This move is expected to incite more protests and will add to growing US-China tensions. In other news, China officially scrapped its long-standing practice of setting an annual target for gross domestic product (GDP) for the first time since 1994.
Leading Indicators. The Conference Board’s Leading Economic Index (LEI) fell 4.4% month over month in April, a slight improvement from the -7.4% in March. We discuss what that may mean for the US economy and investors today on the LPL Research blog.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This Research material was prepared by LPL Financial, LLC.
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).
Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.
- Not Insured by FDIC/NCUA or Any Other Government Agency
- Not Bank/Credit Union Guaranteed
- Not Bank/Credit Union Deposits or Obligations
- May Lose Value
For Public Use – Tracking 1-05014224