The S&P 500 Posted Strong Gains YTD as Stocks Delivered on Earnings. We Remain Bullish

Despite weakness in the last week of the month, all three major stock market indices were up in May amid strong earnings results and slightly cooler inflation.The S&P 500 posted its largest monthly gain since February (+5.0%) while the Nasdaq Composite had its best month since November 2023 (+7.0%). US growth (+6.7%) was among the best performers, followed by US large-caps (+5.1%) and US small-caps (+4.9%). Aside from munis (-0.3%), bonds were also up as investment grade corporates rose 2.0%, 7-10 year US Treasuries increased 1.8%, and the US Aggregate Bond Index gained 1.8%.