With the coronavirus pandemic still the major overhang for investors, equities continued to bounce back from multi-year lows in late March due in large part to optimism about businesses reopening to begin revitalizing the economy. Hopes for COVID-19 vaccines and treatments surged as multiple biotech companies announced progress in human trials during the month. The S&P 500 has risen by more than 36.5% from its March 23 low and is down less than 5% year-to-date (YTD).
- The S&P 500 and Dow Industrials (+4.66%) posted their first back-to-back monthly gains since late 2019.
- Among the three major U.S. indices, the tech-heavy Nasdaq Composite performed best in May (+6.89%), having its strongest two-month gain (+23.5%) since April 2009.
- Risk appetites also continue to expand into fixed-income, with high-yield credit gaining at least 4.4% for a second month.
The Monthly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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