Equities rebounded strongly in May,with the S&P 500 up 6.2% and the Nasdaq gaining 9.6%, led by tech sector strength and better-than-expected earnings.
The Fed held rates steady, emphasizing patience and data dependence, while reaffirming its independence in a high-profile meeting between Powell and President Trump.
Tariff tensions eased modestly as the White House paused new measures and courts challenged the administration’s legal authority—reducing, but not eliminating, policy uncertainty.
Economic data remains mixed, with job growth holding firm but GDP showing a mild contraction and early signs of softness in jobless claims.
U.S. credit was downgraded by Moody’s, following earlier moves by S&P and Fitch; however, markets absorbed the news with limited disruption.
Inflation metrics continue to cool, with Core CPI and Core PCE readings suggesting progress toward the Federal Reserve’s 2% target.
Equity Markets
May marked a dramatic rebound in U.S. equities, reversing much of April’s decline. The S&P 500 gained 6.2% for the month, while the Nasdaq Composite surged 9.6%, its best monthly return since November 2022. Performance was powered by strong earnings reports—particularly from major technology names—and an apparent de-escalation of tariff tensions that had rattled markets earlier in the spring.
Markets Rebound
Markets Rebound
Performance Review & Outlook
Highlights
Equities rebounded strongly in May, with the S&P 500 up 6.2% and the Nasdaq gaining 9.6%, led by tech sector strength and better-than-expected earnings.
The Fed held rates steady, emphasizing patience and data dependence, while reaffirming its independence in a high-profile meeting between Powell and President Trump.
Tariff tensions eased modestly as the White House paused new measures and courts challenged the administration’s legal authority—reducing, but not eliminating, policy uncertainty.
Economic data remains mixed, with job growth holding firm but GDP showing a mild contraction and early signs of softness in jobless claims.
U.S. credit was downgraded by Moody’s, following earlier moves by S&P and Fitch; however, markets absorbed the news with limited disruption.
Inflation metrics continue to cool, with Core CPI and Core PCE readings suggesting progress toward the Federal Reserve’s 2% target.
Equity Markets
May marked a dramatic rebound in U.S. equities, reversing much of April’s decline. The S&P 500 gained 6.2% for the month, while the Nasdaq Composite surged 9.6%, its best monthly return since November 2022. Performance was powered by strong earnings reports—particularly from major technology names—and an apparent de-escalation of tariff tensions that had rattled markets earlier in the spring.
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