S&P 500’s Record May Rally Sparks Analyst Caution Amid Looming Market Risks

Equity analysts are expressing caution after a sharp rally in May lifted the S&P 500 by 6.2% through Thursday, putting the index on pace for its best May performance since 1990. The benchmark is now within 4% of its record high from February, thanks in part to a pause in President Donald Trump’s tariff measures and strong momentum in technology stocks. However, analysts warn that this surge may soon face headwinds, as May is traditionally a weaker month for S&P 500 returns. Risks such as renewed trade-war tensions, uncertainty about Federal Reserve policy, and quarter-end portfolio rebalancing could introduce volatility and potentially reverse some of the recent gains.

Disclosure:
This summary is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. All information is based on publicly available sources as of May 30, 2025. Investors should conduct their own research or consult a qualified financial advisor before making any investment decisions.

Sources:

• https://www.bloomberg.com/news/articles/2025-05-30/s-p-500-s-banner-month-faces-off-with-june-s-lackluster-record
• https://www.bloomberg.com/news/articles/2025-05-28/stock-market-today-dow-s-p-live-updates
• https://www.bloomberg.com/news/articles/2025-05-30/s-p-500-declines-with-renewed-trade-tensions-dampening-sentiment

‍