Despite high market volatility due to trade wars, the US stock market ended May optimistically. The S&P 500 index rose 7%, the best May result in 34 years.
This dynamic pleasantly surprised investors and indicates market confidence despite geopolitical risks and uncertainty about US monetary policy.
Analysts cite the following as the main drivers of growth:
- strong financial reports from major companies, especially in the technology sector;
- a gradual easing of inflation concerns;
- expectations of a possible reduction in the Fed’s key interest rate in the second half of the year.
However, experts advise caution. The summer period is historically less active for the market, and it is possible that after such a rapid rise in the index, we will see a technical correction or a slowdown in growth.