May 2024 Economic & Market Highlights
June 28, 2024

May 2024 Economic & Market Highlights

The CPC Team
  • May was a favorable month for both stock and bond markets. US large cap stocks rebounded, achieving a 5.0% gain for the month, supported by strong first-quarter earnings across various sectors. Developed market stocks also posted notable gains, as the European Central Bank (ECB) exhibited greater confidence in the disinflationary trajectory of the European economy.
  • The Federal Reserve's efforts to control inflation showed limited progress, tempering hopes for immediate rate cuts. However, expectation of rate cuts later in the year supported bond prices.
  • Growth sectors benefited from the anticipation of declining interest rates, and outperformed value sectors by 2.4%. Additionally, US small cap stocks showed strong performance, aligning closely with US large cap stocks.
  • Economic data for May indicated some moderation in the US economy, with capital spending and home sales remaining flat. The Flash Purchasing Managers' Index (PMI) was a highlight, with manufacturing rising to 50.9 and services to 54.8.
Source: Morningstar - All performance is percentage change of total return
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