SAA Monthly Investment Update: May 2025

US equities staged a remarkable recovery in May, while international markets continued to outperform, driven by European strength and emerging market resilience amid easing trade tensions. Bond markets experienced significant volatility with rising yields across major economies, as investors demanded higher compensation for fiscal risks while central banks navigated complex policy environments.

The S&P 500 surged 6.29% in May, its best monthly performance since November 2023, bringing year-to-date returns to positive territory at 0.51%. Technology companies delivered strong earnings that helped alleviate concerns about AI spending slowdowns amid tariff uncertainties.