Market Recap for Week Ended June 1:

May recap

May proved to be a month of modest gains for stocks, as the S&P 500 rose 2.2% and the Dow added 1.1%. The big action took place in other markets, as the yield of the 10-year U.S. Treasury bond rose at mid-month to its highest level in seven years and crude oil prices reached their highest level in three and a half years.

No clear direction

For the third week in a row, major U.S. stock indexes were little changed overall, as the market swung between sizable daily gains and losses. The S&P 500 has climbed about 6% from a recent low point nearly three months ago, but remains nearly 5% below its record high of January 26, 2018

Solid labor report

Stocks ended the week on a positive note after the government reported on Friday that the economy generated 223,000 new jobs in April, exceeding most economists’ expectations. Unemployment slipped from 3.9% to 3.8%, the lowest in 18 years.

Italian instability

Turmoil in Italian politics triggered much of the week’s bond market volatility on both sides of the Atlantic. Early in the week, Italy’s president blocked the formation of a new government that has questioned the country’s membership in the European Union. Tensions subsequently eased after two antiestablishment parties agreed to form a governing coalition.

Source: jhinvestments.com