--- title: May 2025 Market Update | Sanderson Wealth Management description: In May 2025, markets rebounded and economic indicators improved, showing resilience amid continued uncertainty. image: https://insights.sandersonllc.com/hubfs/Featured%20Image%20May%202025-1.png --- - [716.566.2420](tel:716-566-2420) - [Client Login](https://www.sandersonllc.com/client-login/) [![Sanderson Wealth Management](https://insights.sandersonllc.com/hubfs/Sanderson_October2019%20Theme/Images/sanderson-logo-stacked@2x.png)](https://www.sandersonllc.com/) - About - [Services](https://www.sandersonllc.com/services/) - [Our Team](https://www.sandersonllc.com/team/) - [John Sanderson](https://www.sandersonllc.com/team/john-sanderson/) - [Justin Sanderson](https://www.sandersonllc.com/team/justin-sanderson/) - [James Warner](https://www.sandersonllc.com/team/james-warner/) - [C. 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While many reports continued to show that the economy is strong, consumers remained pessimistic about the future. Treasury yields fluctuated throughout the month due to concerns around federal spending and debt. For long-term investors, May serves as a reminder that markets can adapt to changing conditions, even when there is significant uncertainty around economic and fiscal policy. ## Markets The S&P 500 rose by 6.2%, achieving its best month since 2023 and recovering its year-to-date losses. International equities also saw gains, with both developed and emerging markets climbing 4.7% and 4.3%, respectively. Meanwhile, the U.S. Aggregate Bond Index declined by 0.7% in May, although it is still up 2.4% for the year. U.S. Treasury yields saw fluctuations, with the 10-year Treasury yield ending the month at 4.4% from 4.17%. The U.S. dollar index continued its decline, ending May at 99.3, its lowest point in three years. ## Economic Drivers The U.S. economy showed mixed but generally positive signals in May. The Consumer Price Index (CPI) for April revealed a 2.3% year-over-year increase, the slowest rise in inflation since February 2021, indicating a moderation in price pressures. The labor market also remained robust, with the economy adding 177,000 jobs in April, keeping the unemployment rate at a low 4.2%. ## Key Developments Moody’s downgraded the U.S. credit rating from Aaa to Aa1 due to rising debt levels—now at 122% of GDP—mirroring past moves by Fitch in 2023 and S&P in 2011. A new tax and spending bill threatened to add $2.8 trillion to the deficit over the next decade. On the global front, trade tensions eased with tariff relief deals involving China, the U.K., and the EU, taking many of the worst-case scenarios off the table. Corporate earnings were a bright spot, with 64% of S&P 500 companies exceeding revenue expectations. ## Takeaways May highlighted the complex interplay between market performance and ongoing economic and policy uncertainties. Equities rallied on the back of strong earnings and easing global tensions, even as consumers remained cautious and fiscal concerns loomed. For long-term investors, the month underscored the importance of staying disciplined and diversified. ![Stock Summary 5.25-1](https://insights.sandersonllc.com/hs-fs/hubfs/Stock%20Summary%205.25-1.png?width=800&height=353&name=Stock%20Summary%205.25-1.png) ![Market Indicators 5.25-1](https://insights.sandersonllc.com/hs-fs/hubfs/Market%20Indicators%205.25-1.png?width=800&height=425&name=Market%20Indicators%205.25-1.png)   ## Disclosure © 2025 Sanderson Wealth Management LLC. This information is not intended to be and should not be treated as legal, investment, accounting or tax advice and is for informational purposes only. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal, accounting, or tax advice from their own counsel. All information discussed herein is current as of the date appearing in this material and is subject to change at any time without notice. Opinions expressed are those of the author, do not necessarily reflect the opinions of Sanderson Wealth Management, and are subject to change without notice. The information has been obtained from sources believed to be reliable, but its accuracy and interpretation are not guaranteed. ### Let’s talk about your future. Schedule a consultation to learn more about our investment services. ## Filter Blog Posts ### SUBJECT - [Investment Consulting (166)](https://insights.sandersonllc.com/tag/investment-consulting) - [Financial Planning (150)](https://insights.sandersonllc.com/tag/financial-planning) - [Tax Consulting (44)](https://insights.sandersonllc.com/tag/tax-consulting) - [Estate & Generational Wealth Planning (15)](https://insights.sandersonllc.com/tag/estate-generational-wealth-planning) - [Firm News (11)](https://insights.sandersonllc.com/tag/firm-news) - [Lessons Earned (11)](https://insights.sandersonllc.com/tag/lessons-earned) - [COVID-19: Market Watch (10)](https://insights.sandersonllc.com/tag/covid-19-market-watch) - [Community (5)](https://insights.sandersonllc.com/tag/community) - [Philanthropy (4)](https://insights.sandersonllc.com/tag/philanthropy) - [Business Succession Planning (3)](https://insights.sandersonllc.com/tag/business-succession-planning) - [Prosper Financial Wellness (3)](https://insights.sandersonllc.com/tag/prosper-financial-wellness) - [Ukraine: Market Watch (1)](https://insights.sandersonllc.com/tag/ukraine-market-watch) See all ### AUTHOR - [Angelo Goodenough](https://insights.sandersonllc.com/author/angelo-goodenough) - [C. 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