Market Update: Wed, May 13, 2020 | LPL Financial Research

Market Update: Wed, May 13, 2020 | LPL Financial Research

May 13, 2020

US markets higher. US equities opened higher, bucking weakness in Europe and mixed results in Asia. Worries over escalating US-China tensions are growing. It is a quiet news day, but this morning, Fed Chair Powell is scheduled for a virtual meeting with the Peterson Institute for International Economics, with future policy and his views on negative rates to be front and center.

Big reversal day. The S&P 500 Index was up more than 0.5% Tuesday at the peak, but finished down more than 2%. The last time there was a reversal like that was March 20. Could this be the start of some weakness? We discuss stocks ripe for weakness in this week’s Weekly Market Commentary: Time for a Pause?

Will gold keep shining? Gold is up more than 12% for the year, greatly outperforming stocks. Worries about the economic slowdown and negative rates have helped push it higher. We think gold could continue to do well, and we discuss why we like the yellow metal later today on the LPL Research blog.

Small businesses sentiment flipped. The NFIB Small Business Survey for April showed current optimism dropped, but it didn’t drop as much as economists expected, and it didn’t drop as much as it did in March. The underlying positive is that small businesses continue to expect better times over the next six months.


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