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US stocks recorded its biggest monthly rally since late 2023 as President Donald Trump retreated from some of his most severe tariffs and encouraged investors to stack up on dangerous assets.
The Blue-chip S&P 500 rose 6.2% in May, with its highest monthly performance since November 2023, while the high-tech NASDAQ composite rose 9.6%. The rally means that both indicators are in positive territory this year after falling into tariff concerns in early April.
Members of so-called seven epic tech stocks, including Facebook’s parent meta, Elon Musk’s Tesla and Chipmaker Nvidia, reported a nearly 70% surge in quarterly revenue on Wednesday. The index, which tracks finance and industry, has climbed near record highs.
“May was good for stocks,” said Mike Zigmont, co-head of trading and research at Visom Investment Group. “Emotions are very optimistic and unafraid.”
The stock initially began to rise on April 9th. A week ago with the announcement of the “liberation day,” the US President announced a 90-day suspension on tariffs that have freed most of the nation’s major trading partners.
The stock received a further boost in early May when the US and the UK announced their trade agreements. The US and China’s move to cut tariffs for at least 90 days has driven further rise in Wall Street stocks, even as US property and dollars were under pressure.
The biggest cryptocurrencies have surged simultaneously, highlighting the increased risk for investors, and Bitcoin price has risen to $111,965 in hopes that the White House will agree to initial regulations on digital assets.
Many of Wall Street’s biggest investors missed stock rallies, but reduced their position on US assets, fearing a long economic slowdown and wider concerns about Washington’s volatile policymaking.
Some warn that Trump’s unpredictable policies mean that recent market profits could soon evaporate. On Wednesday, a US court held that the president’s “liberation day” tariff scheme was illegal, but the ruling was temporarily suspended by the Court of Appeals a day later.
Analysts hope that the president will impose fresh taxes on tips and drugs over the coming weeks.
“[Trump] Mike O’Rourke said at Jones Trading. “I think he’ll want to remind everyone that a court decision does not hinder his agenda.
