May 2025 Index Returns

In stocks (equities):

May marked the best month for performance of the S&P 500 (+6.3%) since 2023 and snaps its recent three-month losing streak. Although there's still much uncertainty around the continued evolution of the Trump administration's ongoing global trade policy, last month saw progress in U.S.-China trade negotiations as well as the U.S. Court of International Trade strike down many of the tariffs announced on April 2, both of which boosted U.S. stock markets.
In the U.S., all market caps and style segments of stock markets were up in May as the Russell 3000 Index rose +6.3% with large-cap growth stocks represented by the Russell 1000 Growth Index rising the most at +8.8%. However, large-cap growth stocks are still slightly down on a YTD basis (-0.3%). In contrast, large-cap value stocks represented by the Russell 1000 Value Index are up +2.5% on a YTD basis.
Internationally, stocks have continued their upward trend to start the year with developed markets measured by the MSCI World ex USA Index up +4.7% last month and emerging markets up +4.3% as measured by the MSCI Emerging Markets Index during the same period.
On a YTD basis, global stock markets are up +5.3% (MSCI All Country World Net Index), which continue to be driven primarily by stock markets outside of the U.S.. International developed large-cap value stocks have posted the largest YTD gain (+19.6%) of all global market segments and is outpacing the S&P 500 by 18.5% so far this year.

In fixed income (bonds):

Bond returns in treasuries were negative for most all maturities this month as yields rose after the most recent credit rating down grade for U.S. federal debt cast a shadow over the trajectory of the mounting budget deficit.
Corporate and municipal bonds were positive in short and intermediate maturities while longer dated bonds were negative. The Bloomberg U.S. Aggregate Bond Index was down -0.7% last month.
Outside of the U.S., the Bloomberg Global Agg ex-US (hedged to USD) Index was down -0.1% last month.
All bond segments continued to show positive performance over the trailing one and three year periods with the exception of long-dated U.S. treasuries' three-year performance.

Even with continued volatility in the U.S. stock market, a globally balanced 60/40 portfolio is now up +4.0% YTD, which reinforces the benefits of a well-diversified portfolio and that we must focus only on what we can control.

As always, please let us know if you have any questions by emailing support@xyinvestmentsolutions.com
As an additional note, please keep in mind that these reflect historical performance of the current models, not necessarily how accounts were invested in the past.