Stocks and bonds were mostly lower in May, although strong returns from large cap tech allowed the S&P 500 to reach a modestly positive return
Year-to-date returns remain solid in most indices, a result that may come as a surprise to many investors given prevailing economic headwinds
On the domestic front, the Fed is still fighting inflation while also trying to provide adequate liquidity to maintain stability in the financial system
Some cracks started to appear with recent bank failures, but bank deposit outflows have stabilized and the crisis appears to be contained
US GDP grew at a rate of 1.3% in the first quarter, a sharp slowdown from the 2.6% rate in the fourth quarter of 2022