U.S. stocks finished the month on a high note, capping a robust May performance driven by positive economic data and encouraging corporate earnings. The S&P 500 and Nasdaq Composite both recorded significant monthly gains, reflecting investor optimism.

Attention is now squarely on the Federal Reserve, as market participants await signals regarding the future path of monetary policy. Inflation data and employment figures will be closely scrutinized to gauge the Fed’s next move.

Key Factors Influencing the Market:

• Inflation: Persistent inflation remains a primary concern, influencing the Fed’s decisions on interest rate hikes.
• Interest Rates: Expectations surrounding future interest rate adjustments are driving market volatility.
• Economic Data: Upcoming economic releases will provide crucial insights into the health of the U.S. economy.

Analysts suggest that the market’s direction in the coming weeks will largely depend on the Fed’s commentary and any indications of a shift in policy.