May market recap: Stocks and bonds bounce back

May market recap: AI, Inflation & beyond


Lower than expected inflation data reignited hopes for at least one, and maybe two Fed rate cuts in 2024. Headline CPI came in at 3.4%.1 This helped stocks and bonds bounce back from a poor month in April. A modest increase in unemployment also contributed to the theme of a potential soft landing for the economy.

Nvidia revenue soars

Meanwhile, the most anticipated event of the month was Nvidia’s earnings report. Once again, the chipmaker exceeded lofty expectations. Data center revenue was up over 400% from a year ago to $22.6 billion, nearly ten times gaming revenue. The results propelled the company’s share price, allowing Nvidia to pass Apple as the second most valuable company early in June.2 It has been reported that Microsoft, Alphabet, Meta and Amazon accounted for roughly 40% of sales, raising some questions about how much continued investment will be required to support cloud-based AI functions. The company expects sales to increase again this quarter, but at a slower rate.

Small caps keep pace

Despite general outperformance by the largest stocks, the Russell 2000 Small Cap index was able to keep pace with the overall market as small caps are currently viewed as a significant beneficiary of potential lower interest rates. Utilities stocks also continued to rally as investors look to the massive amounts of power that may be needed to run AI applications.

Read more: One thing: Show me the M2ney

Get the scoop on your money.

Stay current on planning, saving, and investing for life.

1 U.S. Bureau of Labor Statistics, “Consumer Price Index,” June 2024.

2 Empower YCharts as of 6th June 2024.


Craig Birk, CFP®


Craig Birk is the Chief Investment Officer for Empower Personal Wealth. A CERTIFIED FINANCIAL PLANNER™ professional, he is responsible for Empower’s retail investment portfolio, providing strategic and executive direction to drive the optimal management of client assets.

The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. No part of this blog, nor the links contained therein is a solicitation or offer to sell securities. Compensation for freelance contributions not to exceed $1,250. Third-party data is obtained from sources believed to be reliable; however, Empower cannot guarantee the accuracy, timeliness, completeness or fitness of this data for any particular purpose. Third-party links are provided solely as a convenience and do not imply an affiliation, endorsement or approval by Empower of the contents on such third-party websites.

Certain sections of this blog may contain forward-looking statements that are based on our reasonable expectations, estimates, projections and assumptions. Past performance is not a guarantee of future return, nor is it indicative of future performance. Investing involves risk. The value of your investment will fluctuate and you may lose money.

Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.