Despite a sell-off on the last day of the month, equities held enough of their gains to post mostly positive month-over-month returns. The Trump administration imposed tariffs on steel and aluminum imports on Canada, Mexico, and the European Union. And, just before scheduled trade talks with China were to resume, President Trump announced that he would proceed with tariffs on Chinese imports and limit Chinese investment in U.S. tech companies. Investors feared retaliation from impacted countries could lead to an all-out trade war. Early in the month, signs of rising inflation sent large caps down, while small caps and tech stocks climbed. However, stocks recovered following the Fed’s decision to maintain the current interest rate range. Throughout the month, stocks rallied, then slipped back, amid trade war fears, a few mediocre corporate earnings reports, and fear of rising price inflation.
Nevertheless, each of the indexes listed here posted monthly gains, with the exception of the Global Dow. The large caps of the Dow and S&P 500 closed the month of May in the black, with the S&P 500 outperforming the Dow by more than a full percentage point. The Nasdaq and the Russell 2000 led the way for the month, each gaining more than 5.0% over their April closing values. Those two indexes have also performed the best since the start of 2018. The Dow and the Global Dow, on the other hand, are still trying to catch up to their 2017 closing values.
By the close of trading on May 31, the price of crude oil (WTI) was $67.10 per barrel, down from the price of $68.57 per barrel on April 30. The national average retail regular gasoline price was $2.962 per gallon on May 28, up from the April 30 selling price of $2.846 and $0.556 more than a year ago. The price of gold decreased by the end of May, closing at $1,302.70 on the last trading day of the month, down from its price of $1,316.10 at the end of April.