Market data through the week ending May 30 2025 (unless noted otherwise)
Equities – Stocks finished May decisively higher. The S&P 500 rallied 6.3 % for the month, erasing earlier losses and turning positive +1.1 % YTD. Mid- and small-caps also advanced (+5.4 % and +5.3 %, respectively), though smaller companies remain in the red for 2025. Developed-market equities added 4.6 % and now lead the major asset classes at +16.9 % YTD, while emerging-market shares rose 4.3 % MTD / 8.7 % YTD.
Style & Size – Leadership rotated toward growth: large-cap growth surged +8.9 % MTD, nearly 2½ times the +3.5 % gain for large-cap value. The pattern repeated down the-cap curve, with mid-cap growth (+9.6 %) and small-cap growth (+6.4 %) outpacing their value counterparts.
Sectors – Technology (+10.9 %), Communication Services (+9.6 %) and Consumer Discretionary (+9.4 %) powered the advance, lifted by robust earnings and AI optimism. Energy eked out a +1.0 % rise as WTI crude hovered near $61, while Health Care lagged at -5.6 % amid renewed policy scrutiny.
Fixed Income – A late-month bid for safety trimmed yields; the 10-year Treasury yield fell to 4.41 % from 4.58 % at the end of April. Treasuries still finished lower for the month, leaving the Bloomberg U.S. Aggregate Bond Index -0.7 % MTD, yet credit held up: high-yield bonds returned +1.7 % as spreads tightened.
Economy & Policy – The Fed stayed on hold, stressing data dependence. Fresh figures showed core PCE inflation up just 0.1 % MoM / 2.5 % YoY, consumer confidence rebounding to 98.0, and personal income climbing 0.8 %. Durable-goods orders, however, slumped 6.3 %, and initial jobless claims ticked higher, underscoring a still-mixed backdrop.
Looking Ahead – With the S&P 500 back near record territory and bond yields still elevated, June’s inflation prints and any progress on trade policy could determine whether risk appetite endures into the summer.
Index Returns – May 2025
Total return (%)
| Asset Class / Index | May (MTD) | Q2-to-Date | 2025 YTD |
| EQUITIES (STOCKS) | |||
| S&P 500 | 6.29 % | 5.57 % | 1.06 % |
| S&P MidCap 400 | 5.40 % | 3.02 % | –3.26 % |
| Russell 2000 | 5.34 % | 2.91 % | –6.85 % |
| MSCI EAFE (Developed Intl.) | 4.58 % | 9.37 % | 16.87 % |
| MSCI Emerging Markets | 4.27 % | 5.64 % | 8.73 % |
| MSCI EAFE Small Cap | 5.61 % | 11.74 % | 15.86 % |
| FIXED INCOME (BONDS) | |||
| Bloomberg U.S. Aggregate | –0.72 % | –0.33 % | 2.45 % |
| OTHER | |||
| Bloomberg Commodity | –0.58 % | –5.36 % | 3.05 % |
| S&P Developed Property | 2.54 % | 3.72 % | 5.57 % |
Sources: Bloomberg, Standard and Poor’s. Past performance is not a guarantee of future results. For client use only.