WEEKLY MARKET RECAP – MAY 30, 2025

All three major U.S. stock indexes gained around 2% for the week, though the rebound wasn’t enough to fully offset losses from the previous week. As of Friday, the S&P 500, NASDAQ, and Dow remained relatively flat on a year-to-date basis, despite the market turbulence from late February through early April.

Following a volatile and largely negative April, stocks bounced back sharply in May. The NASDAQ surged 9.6% for the month, while the S&P 500 rose 6.2% and the Dow added 3.9%. Leading the rally were information technology stocks, with the tech sector of the S&P 500 climbing more than 10%.

Trade policy developments influenced markets throughout the week, which otherwise saw relatively quiet trading. Tuesday delivered the strongest daily gains of the holiday-shortened week after an update on U.S.–EU trade negotiations. Later, investors weighed news about a legal challenge to the Trump administration’s authority to impose reciprocal tariffs.

Long-term bond yields declined, with the 30-year U.S. Treasury falling back below the 5.00% mark, one week after reaching its highest level since 2023. The 30-year yield closed the week at around 4.91%, down from 5.09% on May 21. Yields on shorter-term Treasuries also fell, with the 10-year yield ending at 4.39%.

Inflation data showed some easing in April. The Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, revealed core prices rose 2.5% year over year, excluding food and energy. That was slightly down from 2.7% in March, even as concerns persisted over tariff-driven inflation.

Consumer confidence saw a modest rebound, though it remained near a three-year low. The University of Michigan’s final May reading for its Index of Consumer Sentiment came in at 52.2, an improvement from the earlier preliminary figure of 50.8 and unchanged from April’s final reading.

S&P 500 companies delivered average earnings growth of 12.9% in the first quarter compared to the same period last year, based on FactSet data. Although slightly below the previous quarter’s 17.8% growth rate, it marked the second straight quarter of double-digit gains. The healthcare sector led all industries with a 43.0% year-over-year earnings increase.

Investors are now focused on an upcoming labor market report, due Friday, which will reveal whether May continued the trend of moderate but stronger-than-expected job growth. In April, employers added 177,000 jobs, exceeding the forecast of around 130,000. March’s total was also revised upward to 185,000.