May 31, 2022, 9:52 pm EDT
Stock markets pulled back mildly by about 0.4% to 0.6%. A strong rebound last week made May perform like a flat. In fact, there were lots of volatilities in May.
Considerating that all known conditions remain the same (rate hikes, inflation, Russia-Ukraine war), we believe this is the rebound wave carried over from last week. So, there is no change for the big picture.
Biotech companies suffered a lot today (ILMN, REGN, BIIB) but they do not change much in the direction of the markets.
The only upside highlight was Amazon (AMZN) which was up +4% today. However, AMZN is hovering around the bottom so there is no leadership to talk about.
June is coming tomorrow where high volatility stays there. Having balance reduction is going to start with higher rates, we believe the market prepares for another new low after the rebound. Therefore, please stay cautious along the way.