Financial market momentum stalled as the threat of a default on US government obligations intensified in May.
An agreement by Congressional leaders and the President to raise the debt ceiling until 2025 addressed default risk, allowing market participants to breathe easier at the end of May.
For the month of May, the S&P 500 index of large company US stocks rose by 0.5%. Foreign stocks had a tougher go and declined by 4%. Year-to-date as of May 31, US stocks gained 9.7% and foreign stocks were up by 7.7%
Bonds lost some ground as interest rates rose. The Bloomberg US Aggregate Bond Index fell by 1.1% last month. Through the end of May, bonds returned 2.6%.
Below is a summary of May returns.
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