The Dow Jones industrial average bounced 512 points, or 2 percent, to close at 25,332. The S&P finished May down 5 percent, while the Dow and the Nasdaq dropped 4.6 and 8 percent respectively during the month. The stock market declines occurred despite a strong U.S. economy, bolstered by record low unemployment, robust corporate earnings, low interest rates, low inflation and increasing wage gains. San Francisco Fed President Mary Daly, speaking Monday in Singapore, said the bank had reason to be “patient” on interest rates because of Trump’s recent threat to raise tariffs on Mexican goods. St. Louis Fed President James Bullard said Monday that a rate cut may be “warranted soon.”Stocks are still way up for the year, despite taking a beating during May.

Source: Washington Post June 04, 2019 16:33 UTC