From Nasdaq: 2025-06-02 14:20:00

In May, U.S. equities saw significant gains with the Dow Jones up 3.94%, S&P 500 up 6.15%, Nasdaq up 9.56%, and Russell 2000 up 5.20%. Trade developments between the U.S. and China were positive, leading to the best month for the S&P 500 and Nasdaq since November 2023. Various sectors performed well, while some lagged.

Key economic data trends in May show mixed signals in the labor market, manufacturing weakness, and services sector resilience. Inflation rates are moderating, housing data is mixed, and consumer sentiment improved. The market remains dynamic with ongoing trade negotiations and strong corporate performance in Q1 2025.

For Q1 2025, S&P 500 companies reported strong results with 78% having positive EPS surprises. Blended earnings growth rate was 12.50%, exceeding 10-year averages. Forward P/E ratio for the S&P 500 stands at 21.3, indicating higher market valuations. Various sectors reported higher earnings due to positive surprises.

Looking ahead, market focus is on the nonfarm payrolls report for May with predictions of a 4.2% unemployment rate and 128,000 new jobs added. Tariff headlines will continue to impact market sentiment. Upcoming events include options expiration, S&P Index rebalancing, and the annual Russell Reconstitution in June.



Read more at Nasdaq:: May 2025 Review and Outlook