May was a month of mixed performance in the markets. The Dow Jones Industrial Average experienced a decline of 3.4 percent, while the S&P 500 index managed a modest gain of 0.2 percent. In contrast, the NASDAQ Composite showed strength with a rise of 5.7 percent. Additionally, the yield on the 3-month U.S. Treasury Bill increased from 5.10 percent at the end of April to 5.52 percent in May, reflecting concerns surrounding the U.S. debt ceiling negotiations. Moreover, the yield on the 10-year Treasury Note rose by 20 basis points to 3.64 percent, and the price of oil dropped by more than 11 percent, settling just above $68 per barrel.
The market experienced significant volatility during May, largely due to ongoing debt ceiling negotiations in Washington D.C. However, an agreement to raise the debt ceiling was ultimately reached, and it was expected to be signed by President Biden over the weekend. This news provided relief to the markets, resulting in a rally on June 2nd, as the U.S. avoided the potential risk of default.