May Market Update

Laura Chanin • May 16, 2025

What was it all for?

May Market Update: What Was All That For?

After a bumpy April filled with market ups and downs, US stocks have come roaring back in May — and then some. If you’ve been sticking to your investment plan (even if just barely holding on), you’re now seeing positive returns for the year.

What happened?
On Tuesday, May 13, US markets rallied after U.S. inflation data came in lower than expected. The S&P 500 rose 1%, and the Nasdaq-100 jumped 1.75%, helped along by a major spike in Nvidia stock (up 6% after announcing a chip deal with Saudi Arabia).

This marks the first time both indexes have been positive year-to-date since February. It’s a good reminder that markets can bounce back faster than expected — especially after a stretch of uncertainty.

What’s behind the rebound?
Markets also reacted positively to news of a 90-day tariff truce between the U.S. and China, easing fears around global trade. The U.S. plans to lower tariffs on Chinese goods to 30%, and China will reduce tariffs on U.S. imports to 10%. That’s been enough for some economists to dial back recession concerns for 2025. If you’ve had trouble keeping up, here are charts showing what the tariffs between the US and China have been at since Feb 4.

But wait — what does this mean for you?
Some experts are still cautious. There’s concern that trade policy could cause prices to rise again in the months ahead. Inflation isn’t solved, and global uncertainty isn’t going anywhere just yet.

The key takeaway?
If you stayed invested, you’ve likely now recovered what was lost earlier in the year — and maybe even gained a bit. The lesson here? Trying to time the market can cost you.

Here is a chart that shows the value of staying invested.