While not as dramatic as the double-digit bounce in April, major US stock indices continued to climb in May, with the Russell 3000 up 5.35% and the S&P 500 up 4.76%.
Certainly, the past two months market returns are as favorable of a reaction to our current pandemic situation as one could hope. It’s almost as if the markets have already written off 2020 and are looking into 2021 – maybe because the impact on 2020 is not quantifiable, so it’s easier to just ignore.
A bit of good news on this Friday morning. According to the Wall Street Journal, the jobless rate fell to 13.3%, from 14.7% in April, as employers added 2.5 million jobs in May. As of this post, markets are cheering, with the S&P 500 up 2.76%. Here’s to hoping the labor force continues to mend in June.
Below are returns for the month of May for major stock and bond indexes. All return data provided by Morningstar.