It’s time to review last month’s key events and look ahead to what’s coming in the market and economic landscape. Download the latest edition of the Month-in-Review, developed by the Prime Capital Financial Team!
Quick Takes
- Stocks Higher. U.S. equity indices were higher in May as temporary breaks on tariffs and relatively strong earnings boosted sentiment. The S&P 500 jumped 6.1% and the Nasdaq 100 rose 9.0%. The Magnificent 7 rose about 13.3% in May as big technology companies reported quarterly results.
- Inflation and Interest Rates. The 10Y treasury yield rose in May to 4.4% as the U.S. House passed a budget bill that is expected to increase the deficit. Core PCE inflation for April was 2.5% while headline PCE inflation was below expectations at 2.1% mostly on lower food and energy inflation.
- Trade Negotiations. The U.S. and U.K. agreed to reduce some tariffs on cars and steel after a meeting between U.K. Prime Minister Kier Starmer and President Trump. The U.S. also reached a temporary agreement with China to pause tariffs put in place since April for 90 days and to reduce rates thereafter from the triple-digit levels touted before.
- U.S. Fiscal Policy. The House of Representatives passed a bill to extend the 2017 tax cuts, increase spending on the military and immigration enforcement, and reduce spending on Medicaid, SNAP benefits, and EV and green energy subsidies.
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This article is not to be construed as financial advice. It is provided for informational purposes only and it should not be relied upon. It is recommended that you check with your financial advisor, tax professional and legal professionals when making any investment or any change to your retirement plan. Your investments, insurance and savings vehicles should match your risk tolerance and be suitable as well as what’s best for your personal financial situation.