Driven by solid corporate earnings, a Federal Reserve slowing its bond sales, and a decrease in interest rates, the S&P 500 index reached a new high of 5321 in May before closing at approximately 5277, marking a 4.8 percent increase for the month. However, volatility in the stock and bond markets has increased significantly. The S&P 500’s rally in May followed a 4.1 percent decline in April. Additionally, the Dow Jones Industrial Average dropped about 2000 points, or 5 percent, in eight days before rebounding with a 1.8 percent gain on the month’s last trading day.
Oil prices also fluctuated, with West Texas Intermediate crude falling from nearly $82 a barrel in late April to around $77.23 by the end of May. In the U.S. Treasury market, the yield on the 10-year Note closed at 4.20 percent in March, 4.69 percent in April, and 4.51 percent in May.