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Hope you are all doing well. U.S. stock indexes rebounded from a modest setback the previous week as the NASDAQ and the S&P 500 eclipsed record highs set last month. Renewed enthusiasm over artificial intelligence lifted technology stocks, and the NASDAQ’s 2.4% weekly return outpaced the more modest gains for the S&P 500 and Dow. This week marked the 80th anniversary of D-Day. I have broken down this week’s update using quotes from King George VI’s radio address that day.

At this historic moment surely not one of us is too busy, too young, or too old to play a part

The job market continues to offer a role for anyone who seeks it. May’s jobs growth figure of 272,000 came in well above most economists’ forecasts for around 180,000 and wage growth also exceeded expectations, further complicating the outlook for a potential interest-rate cut this year. Government bond yields rose following Friday morning’s report and stocks were little changed.

We are not unmindful of our own shortcomings, past and present.

This bull market’s main shortcoming has been its breadth. After lagging the previous week, the U.S. large-cap growth index rallied and outperformed its value counterpart by a wide margin, extending the growth style’s year-to-date leadership. Last week NVIDIA, the artificial intelligence (AI) industry leader at the moment, briefly joined the $3 trillion dollar club in terms of market capitalization, exceeding Apple and becoming the second most valuable company. Just three stocks (Microsoft, Apple and NVIDIA) now account for 20% of the index, and their outsized gains have helped the S&P 500 reach its 26th all-time high this year. However, this year’s rally has been better than last year’s. Last year the gains were very narrow with really only 7 stocks accounting for most of the gain. This year, more sectors, asset classes and regions are participating in the upside, which bodes well for the longevity of the bull market. International is also starting to join the rally with many European indexes keeping pace with the U.S. stock market. Ten of the eleven S&P 500 sectors are up year-to-date, real estate being the only sector that’s lower.

Reminder to my Federal Employee clients.  Laurel Wealth Solutions is sponsoring the upcoming Federal Executive Forum, June 12th in Washington D.C. The link is below. If you are interested in attending, my clients will receive a 20% discount on their registration fee using the discount code LWS20.

If you’d like to speak about your investments or your plan, my calendar link is below and you can schedule a phone or zoom appointment. PLEASE NOTE: new appointments will not be available to schedule over the next ten days as I am dealing with a family matter. If it is something urgent please email me or text and I will get back to you as soon a possible.