Reviews & Articles

US Market Performance The S&P 500 index ended May with an increase of about 6.2% – the strongest performance for May since 1990, following three consecutive months of declines. The Nasdaq index also climbed by about 9.6%, making May 2025 one of the best periods since 1997, while the Dow Jones index jumped by about 3.9%, its best monthly performance for May since 2020. The positive trend is mainly due to anticipation of tariff reductions by the US, a push from the technology sector – particularly AI-related companies – and reduced uncertainty regarding the trade war with China. In addition, hedge fund stock sales reached a peak not seen since November 2024, which also supported the market rally. US Bond Market and Credit Markets The US bond market saw a rise in yields, mainly at the ends of the curve, following the Fed's decisions to leave interest rates unchanged and Moody's downgrade of the US government's fiscal situation. Regarding tariff policy, the US Court of International Trade ruled that imposing tariffs would require a structured bureaucratic process, increasing concerns about a hit to government revenues. All these factors, along with an inflation rate measured in April at about 2.5% annually according to the PCE index, led to assessments that interest rates would remain high for an extended period, thus boosting bond yields.