From Nasdaq Corporation

June 3, 2025 09:06:00 AM:

Wall Street’s seasonal adages did not hold true in April or May, with U.S. stock markets posting impressive gains last month despite expectations. The Dow rose 3.9%, the S&P 500 climbed 6.2%, and the Nasdaq Composite jumped 9.6%, marking their best performances since November 2023.

Easing trade tensions, strong economic data, and robust tech earnings boosted market confidence in May, supported by temporary tariff reductions, improved consumer confidence, steady job growth, and better-than-expected corporate earnings, especially in the tech sector. However, legal uncertainties around tariffs and market valuations remain risks for investors.

Among the top five performing sectors in May was Financial Services, up 4.5%. Some of the best-performing stocks from the sector include Coinbase Global (COIN), Northern Trust (NTRS), BNY Mellon (BK), Franklin Resources (BEN), and Bank of America (BAC), each currently carrying a Zacks Rank #3 (Hold). In May, all three major indexes finished in the green, with the Nasdaq and S&P 500 posting their best monthly performances since November 2023.

Coinbase, America’s largest registered cryptocurrency exchange, is strategically positioned to benefit from rising crypto market volatility and asset prices, as well as regulatory clarity under President Trump. The company continues to invest in key infrastructure and stablecoins to advance real-world utility for digital assets, despite facing margin pressures from rising costs and crypto price fluctuations.

Northern Trust, a leading provider of wealth management and banking solutions, is poised to leverage its organic expansion efforts, particularly in the wealth management segment with tailored solutions for ultra-high-net-worth clients. The company’s disciplined cost management and focus on achieving sustainable profitability goals are key drivers for growth, despite near-term uncertainties in the global financial market.

BNY Mellon, operating globally in various financial services, is expected to benefit from the Federal Reserve’s likely continuation of high interest rates, supporting its net interest income as funding costs stabilize. The company’s growth initiatives in foreign markets and personalized services are expected to drive international revenues, while concerns remain around rising expenses and fee income growth sustainability due to market volatility.

Franklin Resources, a global investment management company, has seen growth through acquisitions and partnerships, expanding its presence in alternative asset classes and improving its distribution platform. Despite concerns over investment management fee volatility and regulatory challenges, the company’s diverse product offerings and distribution strategies are expected to support revenue growth.

Bank of America, one of the most interest rate-sensitive big banks, is expected to benefit from higher interest rates and loan demand in 2025, driving net interest income growth. The bank’s aggressive branch expansion and digital offerings are key strategies to solidify customer relationships and improve fee income, despite near-term challenges from rising expenses and credit quality concerns.

Read more at Nasdaq, Inc.: 5 Top S&P 500 Financial Stocks That Bucked the “Sell in May” Trend