The Strength of the Market is: Strong

In the final week of May, the S&P 500 lost 0.51% and Nasdaq dropped 1.1%, snapping a five-week win streak for both. The Dow Jones slipped 0.98%, for a second straight week of losses. Despite the tough week, it was still a winning month, with stocks registering a sixth positive month out of the last seven. For the month, the Dow Jones added 2.3%, while the S&P 500 rose 4.8% and the Nasdaq gained 6.88%. A big chunk of May's strength can be attributed to a surge in Nvidia, the artificial intelligence darling, which was higher by nearly 27% in May.

Economic reports from last week came back mostly negative:

•Single-Family Home Values - lower than expectation

•Pending Home Sales - lower than expectation

•Manufacturing (Dallas) - lower than expectation

•Manufacturing (Richmond) - higher than expectation

•Gross Domestic Product - lower than expectation

•Personal Income - in-line with expectation

•Jobless Claims - higher than expectation

This week, investors will look for guidance from economic reports like Construction Spending, Vehicle Sales, Job Openings, Employment, Consumer Credit and Jobless Claims.