How Much More Will the Fed Need to Hike if Inflation Remains Persistent?

Nasdaq 100 Index Gains Almost 8% in May.

Despite debt ceiling worries, weak market breadth, and stubborn inflation , the Nasdaq 100 Index rose 7.7% in May amid an artificial intelligence (AI)- related rally. The S&P 500 Index was also able to eke out a 0.4% gain but the Dow Jones Industrial Average Index fell 3.2%. US growth stocks (+2.5%) and US large-caps (+0.5%) were among the best performers while international developed equities (-4.0%) and US mid-caps (-3.1%) were among the worst. Bonds were lower as investment grade corporates decreased 1.8%, 7-10 year US Treasuries fell 1.4%, and high yield credits were down 1.2%. Commodities produced negative returns as crude oil declined 10.2%, silver was down 6.0%, broad-based commodities decreased 5.9%, and gold fell 1.3%