06|03|2025

Cautious Resolve | May 30, 2025

Markets recovered some, but not all, losses from last week. Are investors proving to be more resilient as we close out the month of May?

Monday              

S&P 500 0.00% | NASDAQ 0.00%

Markets Closed – Happy Memorial Day!

Tuesday               

S&P 500 2.05% | NASDAQ 2.47%

Markets came out of the long weekend strong on news of delayed tariffs on the European Union and a sizable jump in Consumer Confidence. The concerns in March and April dampened optimism with the unknowns surrounding tariffs, but May was a different story. A rally in the bond market occurred on Tuesday after recent credit downgrades for the United States. This is due to a longstanding commitment to U.S. strength and investors balancing benefits of holding risk-on versus risk-off asset classes.

Wednesday       

S&P 500 0.56% | NASDAQ 0.51%

If tariffs weren’t causing enough shifts in the markets, the U.S. Court of International Trade ruled that sweeping reciprocal tariffs set by the U.S. would be blocked. Markets fell after the announcement as international trade hangs in the balance.

Thursday          

S&P 500 0.40% | NASDAQ 0.39%

Markets attempted to recover Wednesday’s losses, steadying after the U.S. Court of Appeals granted a request for the administration’s tariff policy to remain in effect. Pending home sales also struggled as home affordability has strained new home buyers. Those looking to sell from under their current low-interest rate mortgages remain on the sidelines, which limits the amount of inventory available.

Friday                  

S&P 500 0.01% | NASDAQ 0.32%

Consumer price increases for the past month dropped, Personal income rose, and spending remained steady in the month of April. All three contributed to a calm going into the weekend. Sentiment increased and GDP projections for the 2nd quarter got a surprise pop in early phase projections as well.

Conclusion         

S&P 500 0.67% | NASDAQ 0.76%

Another week for markets in which the ripple effects of tariff policies continued to influence the direction of world trade. This time, however, it was due to a U.S. court ruling instead of an international response to trade demands. April’s market fall has since recovered for the most part, and markets are behaving in an “I’ll believe it when I see it” manner. The fact that volatility is still high, but optimism is increasing shows that there is more tolerance for riskier assets as we conclude the month of May. The S&P 500 was up 6.2%, the Dow Jones was up 3.9% and the Nasdaq soared higher by 9.6% for the month. All indications show that investors still have a tolerance for risk-on assets while maintaining diversified asset classes. The story will continue to unfold but, until then, investors appear to be looking to the future and have maintained their resilience in a fragile situation.

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