From Yahoo Finance: 2025-05-31 08:00:00

The stock market in 2025 has been turbulent, with the S&P 500 experiencing its best month in a year and a half, but still flat for the year. Uncertainties like trade wars and geopolitical tensions have left CEOs pessimistic. Summer typically sees minimal market gains, leaving investors uncertain about the future.

Despite recent gains, investors are cautious due to the volatile market. The S&P 500’s 19% plunge in February led to attractive buying opportunities, but valuations have become stretched. US stocks are lagging behind global peers, making it a challenging year for investors to navigate.

While the S&P 500 is up slightly for the year, it’s a far cry from the double-digit gains of previous years. Historically, the third year of a bull market is the weakest, with potential corrections along the way. However, there is still room for growth, with improved breadth in the market and potential for further gains in certain sectors.

Looking ahead, historical data suggests a challenging month for stocks in June, with minimal average gains. Post-US election years typically see struggles in early June, especially after a strong May performance. Investors may face a bumpy road ahead as the market continues to navigate uncertainties and potential corrections.

Read more: Where the Stock Market Stands Now After a Wild Start to the Year