May 2025 Market Review & Commentary

We hope you're doing well and that you had an enjoyable Memorial Day weekend, along with a great end to May. In the May Summary, I always like to take a moment to personally thank each of you who have served or are currently serving our great country, including your loved ones. The sacrifices you and your family make for the protection of our personal freedoms are significant.

All investors were glad to see the markets rebound in May after the extremely unsettling headlines and events in April. Throughout most of May, the markets showed recovery trends as news regarding trade negotiations moved towards a more reasonable direction. With the beginning of May marked by USA/China tariff reductions and overall inflation data being softer than expected, the markets had a chance to catch their breath. The S&P 5000 concluded the month of May with a +6.15% return, while the DOW Jones recorded just under a +4% return.

Since May is typically a significant month for data, we had plenty to analyze regarding economic reports. The April CPI (Consumer Price Index) was slightly better than expectations, with inflation increasing 2.4% year over year. In addition to the relatively stable inflation figures, unemployment remained steady at 4.2%, enabling the Federal Reserve to hold interest rates unchanged. From a sector perspective, Technology was the clear leader, achieving a +9.97% return for the month, while HealthCare was the only sector to decline, ending the month with a disappointing -5.57% return.

As we look ahead, we will focus on the FOMC (Federal Open Market Committee) meetings ending on June 18th. Additionally, many investors and market headlines will be attracted to Apple’s annual Worldwide Developer Conference, starting today, June 9th, and running through June 13th.