John Hancock: Weekly Market Recap Week Ended May 30

May’s rebound

After a volatile and mostly negative April, the major U.S. stock indexes generated strongly positive results in May. The NASDAQ finished about 9.6% higher for the month while the S&P 500 gained 6.2% and the Dow added 3.9%. Information technology stocks led the broader market, with the S&P 500’s tech sector up more than 10%.

Inflation eases

One measure of inflation remained above the U.S. Federal Reserve’s 2.0% long-term target in April but fell slightly from the previous month, despite concerns about the potentially inflationary impact of higher tariffs. Friday’s reading from the Personal Consumption Expenditures Index showed that core inflation excluding food and energy prices rose at an annual rate of 2.5%, down from 2.7% the previous month.

Earnings scorecard

Companies in the S&P 500 posted an average earnings gain of 12.9% over the same quarter a year earlier, according to FactSet data from the recently concluded first-quarter earnings season. That result marked the second consecutive quarter of double-digit growth but was a modest slowdown from the previous quarter’s 17.8% year-over-year growth rate. Healthcare posted a 43.0% earnings gain in the latest quarter, the highest among all 11 sectors.

Yields retreat

The yield of the 30-year U.S. Treasury bond fell back below the 5.00% threshold a week after it climbed to the highest level since 2023 amid concerns about the long-term outlook for U.S. government debt. The 30-year yield ended the week around 4.91%, down from a recent peak of 5.09% on May 21. Shorter-dated Treasury yields also retreated, with the 10-year yield finishing at 4.39%.

Source: https://www.jhinvestments.com/weekly-market-recap#market-moving-news