Your Monthly Market Newsletter, JUNE 2026

U.S. equities continued their strong rebound in May, with the S&P 500 and Nasdaq posting some of their best two-month gains on record and defying the typical trend. The rally was driven by improving geopolitical sentiment and renewed enthusiasm for AI, with technology stocks leading gains while most other sectors lagged.

Although corporate earnings remained broadly strong, fixed income markets reflected ongoing inflation concerns and rising rates, alongside signs of moderating economic growth. 

Looking ahead, a resilient labor market supports the outlook, but concentrated market leadership and persistent inflation may challenge the sustainability of recent momentum. Please feel free to reach out if you have any questions.

Stocks

The rally seen in April continued into May, and the saying “sell in May and go away” was anything but true with the S&P 500, and NASDAQ posting some of their best ever two-month returns through April and May. The enthusiasm came from two primary drivers, the first was the idea of a more permanent ceasefire with Iran amid the still heightened tensions. Although the Strait of Hormuz is still closed, the two sides seem closer to an agreement in the eyes of the equity markets. The second driver of the rally was the reignition of the AI trade, which saw semiconductor stocks, and other AI or AI adjacent stocks drive higher. The announcement of both the OpenAI, and Anthropic IPO also added to market exuberance in May. 

Sector Performance

Despite the impressive headline returns for May, only three of the eleven sectors in the S&P 500 were positive. Tech was up over 15%, while Consumer Discretionary, and Healthcare stocks also rose roughly 2.5% each. Sectors like Energy and Utilities pulled back the most as oil prices fell, while others failed to continue their rally from April as Technology drew the most attention, and the biggest flows from investors. Despite the fact that returns were not equally distributed for the month of May, earnings were strong across the S&P 500, with most sectors beating earnings expectations, suggesting a strong corporate backdrop. 

Bonds

Fixed income markets eked out a slightly positive gain, but failed to mirror the enthusiasm that equity markets showed. Interest rates rose as fears over inflation lingered as a result of spillover from the Iran war, in direct contrast to what equity markets were showing. The two-year Treasury yield rose 14 basis points, and the ten-year Treasury yield rose 7 basis points, but the yield earned was greater than the drop in prices attributed to higher interest rates. With most headline inflation measures nearing twice what the Federal Reserve would want, it is unlikely that they will cut interest rates in the near future, or possibly at all this year. 

Economic Update

Economic data released in May pertains to April’s figures, which now encompasses two months of higher oil prices. Gross Domestic Product (GDP) for the first quarter was revised lower in May, down to annualized rate 1.6%, below the historic 2.0% level of growth. The Consumer Price Index (CPI) rose 3.8%, as inflation was driven higher by continued gains in oil prices that trickle across most other areas of the broad basket of prices. Higher level of inflation drove down the University of Michigan Consumer Sentiment Index, which hit its lowest level on record, coming in at 44.8. Despite the decline in consumer sentiment, consumers remain gainfully employed, with the unemployment rate coming in at 4.3%, unchanged versus the previous month, and the economy added 115,000 nonfarm payrolls as well. All-in-all, rising inflation, and moderating growth are creating a crosscurrent, but as long as employment stays high and both growth and inflation stay rangebound, markets and the economy should remain in good shape. 

Small Actions, Big Impact: Simple Ways to Boost Wellbeing and Make a Difference

Dr. Mark Williamson, director of Action for Happiness, shares an uplifting reminder that improving our own wellbeing can coincide with making a positive impact on others. Drawing on research into the science of happiness, he highlights a handful of simple habits that can boost both mood and resilience in everyday life. 
The key takeaway is refreshingly simple: small actions matter. Rather than waiting to feel motivated, taking steps like getting outside, reaching out to a friend, or trying something new can often spark positive change on their own. 

Williamson also encourages a mindset of “realistic optimism”—acknowledging life’s challenges while focusing on what helps us move forward. Alongside this, nurturing relationships through small, consistent gestures—like checking in or truly listening—can have a lasting impact on our overall happiness. 

Ultimately, it’s a powerful reminder that even the smallest efforts to care for ourselves and others can create a meaningful ripple effect. To learn more, read the full article here.

THOUGHT FOR THE MONTH

^{Index Definitions}

^{Dow Jones Industrial Average: The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities.}

^{Dow Jones U.S. Real Estate Total Return Index: The index is designed to track the performance of real estate investment trusts (REIT) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies.}

^{NASDAQ Composite: The NASDAQ Composite is a market-cap weighted index of all issues listed on the Nasdaq stock exchange. It is heavily weighted towards the technology sector.} 

^{S&P 500 Bond Index: The S&P 500® Bond Index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap U.S. equities. Market value-weighted, the index seeks to measure the performance of U.S. corporate debt issued by constituents in the iconic S&P 500.}

^{S&P 500 Consumer Discretionary: The S&P 500® Consumer Discretionary comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer discretionary sector.}

^{S&P 500 Consumer Staples: The S&P 500® Consumer Staples comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer staples sector.}

^{S&P 500 Energy: The S&P 500® Energy comprises those companies included in the S&P 500 that are classified as members of the GICS® energy sector.}

^{S&P 500 Financials: The S&P 500® Financials comprises those companies included in the S&P 500 that are classified as members of the GICS® financials sector.}

^{S&P 500 Index: The S&P 500® index is a market-cap weighted index of the largest 500 companies headquartered in the United States. The index covers approximately 80% of available market capitalization.}

^{S&P 500 Utilities: The S&P 500® Utilities comprises those companies included in the S&P 500 that are classified as members of the GICS® utilities sector.}

^{S&P U.S. Aggregate Bond Index: The S&P U.S. Aggregate Bond Index is designed to measure the performance of publicly issued U.S. dollar denominated investment-grade debt. The index is part of the S&P AggregateTM Bond Index family and includes U.S. treasuries, quasi-governments, corporates, taxable municipal bonds, foreign agency, supranational, federal agency, and non-U.S. debentures, covered bonds, and residential mortgage pass-throughs.}

^{S&P U.S. Treasury Bond Index: The S&P U.S. Treasury Bond Index is a broad, comprehensive, market-value weighted index that seeks to measure the performance of the U.S. Treasury Bond market.}

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