U.S. stocks saw early May gains amid positive economic data that boosted business recovery optimism, yet by mid-month, gains faded on rising inflation concerns that sparked volatility. Despite several state and national positive vaccination milestones, the S&P 500 eked out a fractional gain for the month. Moreover, the Nasdaq Composite snapped a six-month winning streak as investors rotated away from growth into value-oriented companies.
- The Dow Industrials jumped 2.2% in May, outperforming the S&P 500, while both indices extended gains into a fourth month.
- The tech-heavy Nasdaq Composite fell 1.44% in May, its first negative month since October 2020.
- The Small Cap Russell 2000 Index edged fractionally higher last month, capping its eighth straight monthly gain for the first time since 1995.
- Among major asset classes, since the March 23, 2020 bear market low, the S&P 500 has risen 91.6%, the Bloomberg Barclays U.S. Aggregate Bond Index has gained 4% and the Bloomberg Commodities Index has climbed 49.7%.
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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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