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The Market in Five Charts: June 2024

AI-Driven Surge and Persistent Inflation

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Pitcairn Insights

June 10, 2024

In June’s Market in 5 Charts, Chief Global Strategist Rick Pitcairn notes that the S&P 500 surged 10% last month fueled by the AI boom and increased liquidity from fiscal policies. Surprisingly, gold has outperformed the S&P 500, performing well alongside infrastructure and commodities. While inflation has decreased from its pandemic-era high, it “remains sticky,” says Pitcairn, and has recently ticked up from 3.2% to 3.4%. Government spending remains high, contributing to persistent inflation. The Federal Reserve is expected to cut rates after the November 2024 presidential election. Despite high energy demand driven by artificial intelligence advancements, oil prices dropped in May due to geopolitical factors and US Strategic Petroleum Reserve releases. But this dip is seen as temporary, with energy prices expected to rise post-election, says Pitcairn.




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