Market Update
The markets in May were marked by ongoing volatility. Inflation, questions over the direction of monetary policy, and slower liquidity growth impacted equities. The ongoing debt ceiling negotiations cast a cloud over financial markets for much of May. Investors worried about the ramifications of inaction as the June 5 deadline loomed. Even after the president and House speaker reached an agreement toward the end of May, concerns persisted over whether Congress would pass the bill to lift the $31.4 trillion U.S. debt ceiling.
Tech shares and artificial intelligence stocks captured the attention of investors in May. One prominent chipmaker in particular saw its market capitalization briefly touch $1 trillion, with its stock up 36.0% in May. The Nasdaq was the clear winner in May among the benchmark indexes listed here, while the S&P 500 was able to eke out a monthly gain. The Dow, the Russell 2000, and the Global Dow finished the month lower. Year to date, the Nasdaq was well ahead of its 2022 closing value, followed by the S&P 500 and the Global Dow. The Dow and the Russell 2000 have fallen below their 2022 year-end values.
International Markets
China's post-pandemic economic recovery showed signs of sputtering in May. Weak factory activity further evidenced China's economic slowdown. Elsewhere, Europe's largest economy has slipped into recession. Germany's economy dropped 0.3% in the first quarter after contracting 0.5% at the end of 2022. In Germany, consumer spending declined, falling 1.2% in the first quarter, as large price increases, particularly for food and energy, slowed personal consumption expenditures. Rising inflation continued to be an issue in Europe in May. However, the European Central Bank slowed the pace of its interest-rate hikes, raising the key rate by 0.25 percentage point to 3.25%, still a near 15-year high. For May, the STOXX Europe 600 Index decreased 2.2%; the United Kingdom's FTSE slid 4.2%; Japan's Nikkei 225 Index gained 5.9%; and China's Shanghai Composite Index dipped 3.6%.
On A Personal Note
Jeff and Peggy went to Greece. They visited Athens, Crete, and Santorini. Had a great experience with the people, the food, the scenery, and the history. Oh, and the wine too. Sam spent a weekend in Hocking Hills with Savanna. It was nice to get away, enjoy the outdoors, and kick off summer. Chris spent a few nice days in May playing golf and spending time with his family. Drew’s daughters wrapped up the school year and are now on summer break. Elizabeth spent May traveling around Europe. Her graduation trip included visits to Spain, Portugal, and Italy. The food was delicious! Lisa and David took in a couple of concerts at PNC Pavilion, they saw Billy Idol and Brit Floyd. Also Shelbi came home for the summer, they are very excited to have her back for a little while.
Welcome Taylor!
Our MDM team has welcomed a new member and are excited to have her on board. Taylor is our new Private Client Associate. She graduated from Miami University with a Bachelor’s in Early Childhood Education. Taylor recently switched careers from teaching first grade to now working with our firm. She is looking forward to new opportunities learning about a new industry and working with our clients to help them meet their financial goals.
All market update and international markets information is sourced from Forefield’s quarterly market review. This is being provided solely for informational and illustrative purposes, is not an offer to sell or a solicitation of an offer to buy the securities highlighted. The factual information given herein is taken from sources that we believe to be reliable, but is not guaranteed as to accuracy or completeness. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. Past performance is not an indication of future results. Employees of Janney Montgomery Scott LLC or its affiliates may, at times, release written or oral
commentary, technical analysis or trading strategies that differ from the opinions expressed here. The S&P 500 is an unmanaged, capitalization-weighted index. Performance figures assume reinvestment of capital gains, dividends, but do not include any fees or expenses. The Dow Jones Industrial Average is commonly used as a proxy for the U.S. stock market. The DJIA is an unmanaged average of common stocks composed of stocks of major industrial companies and assumes reinvestment of dividends and capital gains distributions. It is not possible to invest directly in an index. Market Update, International Markets, FOMC and Interest Rates, and Eye on the Month Ahead content provided by Broadridge Investor Communication Solutions, Inc from the Monthly Market Review section.
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