May kept the good times rolling, as markets continued their resilient run despite plenty of noise to navigate.
Investors continued to shake off ongoing geopolitical uncertainties, pushing major indices higher for the month, while the economic backdrop remained a bit of a mixed bag. The labor market added more jobs than expected, signaling underlying strength. However, inflation continued to creep higher amid elevated oil prices, and consumer sentiment hit another fresh low.
The Nasdaq 100 was the leader, surging 10.58% on the back of strong tech earnings and continued AI enthusiasm. The S&P 500, CRSP US Small Cap Index, and Dow Jones Industrial Average also gained 5.26%, 3.19%, and 2.93% respectively. While US indices moved broadly higher, only three of the eleven major sectors finished the month in positive territory. As a style, growth outpaced value for the month.
International markets also moved higher, with developed international stocks up 4.32% and emerging markets advancing 1.61%. While global sentiment has improved from earlier in the year, ongoing geopolitical noise continues to keep a ceiling on markets overseas.
Aggregate US bonds posted a modest gain of 0.31%, though the path was anything but smooth. The 10-year Treasury yield climbed as high as 4.67% amid continued inflation concerns and rate cut uncertainty, before settling back near where it started, closing at 4.45% compared to 4.40% at the beginning of the month. Adding to the intrigue, Kevin Warsh officially stepped in as Fed Chair, replacing Jerome Powell. Markets will be watching closely to see whether the new leadership signals any shift in tone or policy direction.
Markets don’t always move in a straight line, and May was a good example of that beneath the surface. Volatile interest rates, mixed economic data, a leadership change at the Fed, and heightened geopolitical tensions all had the potential to rattle investors. However, markets moved higher, reflecting the forward-looking nature of investing. It’s a good reminder of why having a disciplined, goal-oriented investment strategy matters more than reacting to headlines in the long-run.
Warren Buffett spent decades as the star of Omaha’s biggest annual show. This year, he sat in the audience.
After taking over as CEO of Berkshire Hathaway earlier this year, Greg Abel made his debut as host of annual shareholder meeting.
The crowd was smaller than past years, with an estimated attendance of 20,000 compared to around 40,000 previously. However, reviews were mostly positive as attendees received a more detailed look under the hood.
Regarding the company’s massive $400 billion cash pile, which is larger than the market cap of 479 companies in the S&P 500, Abel assured there isn’t any pressure to spend it immediately. When it came to AI, he was equally deliberate, saying Berkshire wasn’t “going to do AI for the sake of AI.”
The Oracle of Omaha may have stepped back, but his successor seems Abel to do the job…
Turns out there’s another kind of inflation Harvard is worried about, and it has nothing to do with tuition costs.
Harvard faculty recently voted to cap the number of A grades professors can award to undergrads, limiting them to 20% of students per course, plus up to four additional students.
The move comes as grade inflation at the school has quietly gotten out of hand. A’s accounted for 60% of grades awarded to Harvard undergrads last year, compared with just 25% in 2005.
As A’s became the norm, 55 students tied for the school’s top GPA honor in 2025, an award that historically went to one or two students per year.
Supporters say the change will motivate students to work harder, while critics argue it will pit classmates against each other.
Apparently, the only thing harder than getting a parking spot on campus will be getting a 4.0 now.
Broad Market Returns
| Asset Class | 1 Month | 3 Month | YTD | 1 Year |
| S&P 500 (VOO) | 5.28% | 10.56% | 11.25% | 29.91% |
| NASDAQ (QQQ) | 10.57% | 21.73% | 20.34% | 42.91% |
| Large Cap Growth (VUG) | 7.73% | 16.78% | 10.32% | 30.69% |
| Large Cap Value (VTV) | 2.45% | 2.78% | 11.54% | 26.26% |
| Small Cap Growth (VBK) | 6.16% | 11.15% | 17.83% | 35.51% |
| Small Cap Value (VBR) | 1.04% | 2.73% | 11.52% | 26.74% |
| Developed International (VEA) | 4.32% | 2.35% | 15.08% | 33.22% |
| Emerging Markets (VWO) | 1.61% | 3.06% | 11.38% | 30.96% |
| REITs (VNQ) | -0.65% | 1.08% | 9.30% | 11.40% |
| Aggregate Bonds (BND) | 0.28% | -1.32% | 0.48% | 4.98% |
| Corporate Bonds (VCIT) | 0.40% | -1.06% | 0.48% | 6.29% |
| High Yield Bonds (JNK) | 0.48% | 1.15% | 1.77% | 7.76% |
| Long Term Treasuries (VGLT) | 0.51% | -4.12% | -0.23% | 4.34% |
| International Bonds (BNDX) | 0.82% | -1.11% | 0.93% | 2.12% |
Market Health Indicator
The Market Health Indicator (MHI) measures market health on a scale of 0 – 100, analyzing various market segments such as economics, technicals, and volatility. Higher scores indicate healthier market conditions.
Fun Facts
- Point Nemo in the Pacific Ocean is the farthest place from land on Earth. It’s closer to the International Space Station than the nearest landmass.
- The fingerprints of a Koala are so similar to humans that even forensic experts struggle to tell them apart.
- Valley Creek Elementary School in Texas spent four months knotting the world’s longest friendship bracelet, measuring 2,795 feet, 9 inches.
- The longest-living bird on record is Cookie, a male pink cockatoo, who lived to the age of 83 at Brookfield Zoo, Chicago.
– The Aspire Wealth Team
