Only 3 of the 11 US stock sectors were positive in May as Technology, Communication Services, and Consumer Discretionary led the way. On the flip side, Energy tumbled 10%, followed by Materials (down 6.9%) and Consumer Staples (down 6.2%).
Unemployment increased by 0.3 percentage points to 3.7% in May one month after retreating back to its lowest level since 1969 (3.4%). Inflation remained essentially unchanged MoM, and the Federal Reserve issued its 10th consecutive rate hike at the start of the month, bringing the Fed Funds Rate to 5.25%. Oil was down over 6.5% in May, bringing both WTI and Brent down over 41% from their highs last year.
US Treasury yields spiked sharply in May amid debt ceiling risk. The 1-Month Treasury Bill surged a whopping 93 basis points to 5.28%, followed by the 3-Month at 5.52% (+42 bps) and 6-Month at 5.46% (+40 bps). Long-term bonds, such as the 10-Year, also got a lift, but its yield of 3.64% still puts it as the lowest on the curve. The Canada 10 Year Benchmark Bond Yield increased by 34 basis points in May and Japan’s 10 Year Government Bond Interest Rate ticked up 5 bps. Otherwise, global yields fell in May.
Continue reading: https://get.ycharts.com/resources/blog/monthly-market-wrap-may-2023/
Cerro Pacific Wealth Advisors LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Cerro Pacific Wealth Advisors LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Cerro Pacific Wealth Advisors LLC unless a client service agreement is in place.
