The Q Review: May 2024

Welcome to the Q Review, a monthly report from Qtrade Direct Investing®. Each month, we’ll share some great information about what’s been happening in the markets, what our Qtraders are doing, and what’s new with us!

With May behind us, it's time to review some of the key developments in the financial world over the past month. May offered plenty of noteworthy moments, from easing inflation in Canada to impressive earnings from the tech giants. Let's break it down.

Inflation Eases in Canada

One of the most significant economic events in May was the announcement that Canada's annual inflation rate now sits at 2.7%. This marks the slowest rate of consumer price growth since March 2021. The alignment with the Bank of Canada's (BoC) forecast suggests that interest rate cuts may be on the horizon. This could mean more favourable borrowing costs and potential market optimism for investors shortly.

S&P 500's Bullish Streak

In May, the S&P 500 experienced its fifth consecutive week of gains—the longest bullish streak since February—before ending the month with a slight decline. This performance is a testament to the market's resilience despite ongoing economic uncertainties. Investors should continue to monitor the S&P 500 as it remains a key indicator of market sentiment.

Nvidia's Impressive Earnings

After reporting better-than-expected earnings, Nvidia's success story continued to unfold towards the end of May as it headed towards a fresh all-time high. This performance capped off a strong series of first-quarter earnings announcements. Notably, Nvidia's success not only boosted its own standing but also contributed to the overall strength and potential of the tech sector.

The Magnificent 7's Record-Breaking Performance

The term "Magnificent 7" has been aptly used to describe seven leading tech companies, Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia, and Tesla. Collectively, these tech giants posted a net income of $108.9 billion over the first quarter—a gain of more than 50% compared to the same period last year. This phenomenal growth underscores the sector's critical role in driving market performance and innovation.

Most bought and sold securities in May on Qtrade Direct Investing

Ten most purchased securities on Qtrade Direct Investing – May 2024

1. ISHARES CORE EQ ETF PTF UN
2. TORONTO DOMINION BK
3. BCE INC NEW
4. ISHARES PREMIUM MONEY MKT ETF
5. ISHARES CORE GROWTH ETF PORT
6. NVIDIA CORP
7. TELUS CORP
8. VANGUARD S&P 500 INDEX ETF UN
9. SHOPIFY INC CL A SUB VTG
10. GLOBAL X S&P 500 INDEX ETF
    

Ten most sold securities on Qtrade Direct Investing – May 2024

1. TORONTO DOMINION BK
2. ENBRIDGE INC
3. GAMESTOP CORP NEW CL A
4. NVIDIA CORP
5. CANOPY GROWTH CORP COM
6. SHOPIFY INC CL A SUB VTG
7. ROYAL BANK OF CDA
8. BNS INV SAV ACT SR F -NL
9. BETAPRO NAT GAS DLY BULL ETF
10. ISHARES PREMIUM MONEY MKT ETF

The latest from Qtrade

Beyond market movements, we shared a new homeownership series based on our recent Leger survey. Our team of financial experts has curated these articles to provide you with the latest insights on breaking into the housing market.

• Should you wait for your dream home? Learn why getting into the housing market sooner might be a smart financial move, even if it's not your dream home.
• Best ways to save for a down payment: Discover practical strategies to accumulate funds for your down payment.
• Alternative buying arrangements: Explore unconventional methods to secure home ownership.

These articles provide valuable insights for those looking to enter the housing market, and are a must-read for prospective homeowners.

Finally, in case you missed it—T+1 settlement is now in effect for North American securities. This change aims to enhance efficiency and reduce the risk associated with securities transactions, ultimately benefiting investors. With T+1 settlement, investors can now settle their trades one business day after the trade date, compared to the previous T+2 settlement. This means faster access to funds and a shorter period of market exposure, which can be particularly beneficial in volatile market conditions.

By keeping a close eye on market trends and leveraging expert insights, you can enhance your investment strategy and stay ahead of the curve. We invite you to explore the full range of resources you have access to as a Qtrader to help you make informed investment decisions. Stay tuned for more updates, and as always, happy investing!