Category: insight
2 Min read | June 06, 2025

Market Monitor May 2025

  • Commentary
  • Market Monitor
May 2025 market commentary from the NEI Investment Management Team.

Summary:

Equity rebound, bond yield shifts, and tax policy debates

Highlights

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May 2025 saw global markets navigate a complex landscape of extended tariff truces, shifting bond yield dynamics, and the unveiling of President Trump’s tax plan.
 

The 90-day tariff pause with China, announced May 9, sustained an equity rally, though markets showed muted responses to Trump’s tariff rhetoric on the EU. Corporate earnings remained robust, particularly in AI-driven sectors, but tariff uncertainty restrained forward guidance.
 

In bond markets, surging Japanese yields and a potential yen carry trade unwind challenged U.S. Treasuries’ dominance as a safe-haven.
 

Meanwhile, Trump’s tax plan, with its focus on corporate tax cuts, stirred debate over fiscal sustainability. Central banks grappled with balancing inflation and growth amid divergent regional pressures.

 

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