Although inflation is down from its highs, the stock market is pricing in another rate hike next month. Given this uncertain backdrop, fundamentally sound stocks BP p.l.c. (BP), Sumco Corporation (SUOPY), and TORM plc (TRMD) might be good watchlist additions in May. These stocks have gained momentum lately and look well-positioned to maintain the same.
Inflation being on a downtrend for the ninth consecutive month and coming in at 5% in March have raised hopes of the Fed slowing down with future interest rate hikes. However, as inflation remains twice above the 2% target level, it might push the Fed to proceed with the anticipated 25-basis-point interest rate hike next month.
