May Recap and Looking Ahead to June

Watching the Weather: Market Conditions on the Road to Retirement

After a bumpy April, the markets rebounded in May. This was thanks to continued excitement over a handful of AI-related companies, as well as modest signs of improvement in the battle over inflation. 

Inflation reports showed that prices in April increased by only 0.3% compared to March.[1]  This was slightly lower than what economists had forecasted. That gave life to investors, who have been waiting for any hopeful signs that the Federal Reserve might lower interest rates sometime this year.

However, rising treasury yields suggested that many investors still expect rates to remain elevated for some time. That put a damper on the market’s momentum toward the end of the month.

What We are Keeping an Eye on in June and Beyond

Recently, major retailers like Target, Walmart, and others have announced price drops on many of their goods, especially groceries.[2]  That’s certain to be cheered by consumers, who have been feeling the pinch of inflation and tamped down on unnecessary spending. Investors will be watching closely to see if other retailers follow suit…and if such moves are reflective of cooling inflation as the weather heats up.

As always, Jackie and I will continue monitoring everything on our end so you can focus on enjoying the summer. Have a great month!  

[1] “CPI report shows inflation easing in April,” CNBC

[2] “Walmart, Target, Amazon, Aldi cut prices,” Fox Business