April showers gave way to flowers during the first half of May.
Stock market declines seemed to have been a function of early spring. As investors anticipated clearer, brighter weather ahead, they warmed up to stocks, though the warmth faded somewhat during the final week of May.
Large company US stocks, as measured by the S&P 500 Index, rose by 5% in May. Year-to-date, US stocks are in the black by 11.3%. Foreign stocks also returned 5% in May, and thus far in 2024 have gained 7.7%.
Small company US stocks climbed by 4% last month and are up by 4.5% so far in 2024.
Treasury bond yields were stable for shorter maturities but declined slightly for longer-term maturities in May.
For the month, the Bloomberg Aggregate Bond Index, the main benchmark for US investment-grade bonds, registered a positive return of 1.7%. Year-to-date, investment-grade bonds have declined by 1.6%.
Below is a summary of May returns:
US Stocks = S&P 500 Index; US Bonds = Bloomberg US Aggregate Bond Index
-RK