Financial Market Updates for May 17, 2024: US stocks retreat, Asian markets rise, and oil prices increase

US Stocks Take a Step Back, Walmart Surges Amid Optimistic Outlook

On Friday, US stocks retreated from their recent record highs, with the Dow Jones Industrial Average falling to 39,869.38. The S&P 500 and Nasdaq Composite also saw declines, with most S&P 500 sectors posting losses, except for consumer staples.

One of the standout performers was Walmart, whose stock surged by 7% on an optimistic fiscal 2025 outlook due to lower inflation expectations. On the other hand, Deere’s stock dropped by 4.8% following a revised profit forecast.

Chubb’s shares also rose by 4.7% after Warren Buffett’s Berkshire Hathaway made a $6.7 billion investment. However, GameStop and AMC Entertainment saw steep declines of 30% and 15% respectively.

In Asian markets, Hong Kong stocks rose ahead of Chinese economic data release, with the Hang Seng index climbing 1.1%, led by Chinese tech and property firms. Hang Seng Mainland Properties surged by 2.5%, while Hang Seng Tech rose by 1.8%. Meanwhile, Japan’s Nikkei 225 fell by 0.48%, and China’s CSI300 edged up by 0.15%.

Commodities also saw movement, with oil prices rising and Brent crude set for its first weekly gain in three weeks. Gold prices stood at $2,374.19 per ounce.

China experienced a sharp monthly drop in new home prices in April, marking the largest decline in over nine years despite efforts to stabilize the property market. Economic data from China presented a mixed picture, with industrial output surging by 6.7% year-on-year in April, while retail sales and fixed asset investment fell short of expectations.

In other news, OpenAI partnered with Reddit, boosting OpenAI’s shares by 15% in after-hours trading. The deal allows OpenAI to access Reddit’s content and integrate AI tools amid legal challenges from publishers.

Investors will be watching Eurostat’s April consumer price data for the euro area and speeches from US Federal Reserve officials. Land Securities, a top UK real estate firm, is set to announce its financial results, with the stock rising by 50% from its 2022 low.