- U.S. equities staged a remarkable recovery in May, thanks to optimism surrounding easing tariff tensions, with the S&P 500® up 6%, posting its best May since 1990. Strong Big Tech earnings powered the market upward, with the S&P 500 Top 50 up 8%. Although the fiscal deficit, inflation concerns and ongoing geopolitical uncertainties continue to linger, volatility declined, with VIX® closing the month below the 19 handle.
- Although slightly underperforming their large-cap peers, the rally was broad based, with the S&P MidCap 400® and S&P SmallCap 600® both up 5%. Uncertainty remained over the future course of monetary policy after the Fed minutes signaled caution.
- Most sectors posted gains, led by Information Technology and Communication Services, up 11% and 10%, respectively, while Health Care was a notable laggard.
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