Market Update – May 2020

Global – COVID-19 Lockdown ease

U.S. equities performed well in May as investors took heart from the proposed easing of lockdown restrictions in almost all U.S. states, as well as in many other countries around the world. Market optimism remained positive despite confirmation that the economy had contracted in Q1 even further than was at first indicated.

This was the first negative economic growth since Q4 2008. At the heart of this economic slowdown was the sharp decline in consumer spending which is the lifeblood of the American economy. This was further exacerbated by concerns over a possible deterioration in U.S./China trade negotiations. All sectors in the S&P 500 rose with the index returning 4.8%. I.T stocks were again the best performers.

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