May 2025 Market Snapshot

Rosemeyer Management Group

May in Review

In May, equity markets rallied off recent lows to reverse losses incurred in March and early April. Led by a resurgence in tech companies, the S&P 500 advanced 6.29% – posting its best month since November 2023 and outperforming global equities. Investors rotated back into risk assets in May as trade tensions eased and corporate earnings showed robust growth in Q1. Growing optimism of a trade deal between the U.S. and China especially spurred buying activity. In contrast, bonds posted a negative monthly return as yields rose following Moody’s downgrading of U.S. government debt on fears of a ballooning federal debt. Moderating inflation concerns led to a modest bond market recovery towards month-end.

Index	1 Month	YTD
Dow Jones Industrial Average	4.16%	0.08%
Standard & Poor’s 500 Average	6.29%	1.06%
Russell 2000 (Small Cap Index)	5.34%	-6.85%
Total U.S. Stock Market	6.40%	0.59%
MSCI ACWI ex USA (Intl. Index)	4.58%	14.03%
Barclay’s U.S. Agg. Bond Index	-0.72%	2.45%

Source: Morningstar

Looking Forward: What’s Ahead for Q3 & Beyond

Following a volatile start to 2025, investor fears seemed to have eased with the prospects of U.S. trade deals coming on the horizon. The current administration has touted trade deals in the offing with nearly all major U.S. trading partners. With that being said, investor patience may wane if the promised trade deals do not come to fruition as expected. Equity and fixed income investors alike will be paying close attention to the policy outlook of the Federal Reserve. The Fed finds itself caught between competing risk of sticky inflation, slowing economic growth, and fiscal concerns. The good news is that inflation has continued to cool to start 2025, and the expected inflation from tariffs has not yet materialized. However, if the Fed drops interest rates too quickly it could add fuel to the fire if prices do spike.

Furthermore, the current tax and spending bill working its way through Congress looms over Fed decisions as well. A potential for a rising federal deficit could make an interest rate cut more imperative to lessen the cost of servicing the Federal debt load. Markets will likely continue to be “jumpy” on news one way or the other.

On a Personal Note

On a Personal Note, RMG recently celebrated a ribbon cutting event for our new Platteville location. The event was attended by our staff and immediate family members along with representatives of the Platteville Chamber of Commerce. This new office equips our staff to maintain its top-notch level of service and continued client focus while our RMG family grows. We look forward to many years of dedicated excellence in our new home!

Rosemeyer Management Group

Licensed in CO, FL, IA, IL, MA, MN, MO, NV, NY, WA, WI, WV & TX J.P. Morgan Asset Management, July 1, 2025 · NASDAQ.com, July 1, 2025

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