This month we take a closer look at the impact of financial stress on the markets.
- Outside of small caps, domestic equities enjoyed another positive month as the broad market added 1 percent in May. Year to date, all major equity indices remain in positive territory.
- Building on their recent strength, international equities outperformed their domestic counterparts in May, aided by a weakening dollar that acted as a bit of a tailwind for U.S. investors.
- Most fixed income indices gained ground in May as bonds benefited from a flattening of the yield curve, and more risk-oriented sectors such as high-yield bonds and global credit benefited from the risk-on environment.
- The Fed unsurprisingly announced another 25 basis point hike in June, demonstrating a continued commitment to their policy of gradual tightening.
- Job creation slowed in May, although the jobless rate dipped to 4.3 percent. Economic data remains largely positive, and growth likely picked up since Q1.