S&P 500 Seals Best May Since 1990—While Traders Still Find Reasons to Fret

Markets edged higher in a lukewarm rally—just enough to keep the suits from panicking. The Dow? Barely budged. The S&P? Flexing its 1990s nostalgia.

Wall Street’s ’win’ feels more like a participation trophy. But hey, at least the algorithms got their green candles.

Trump’s tariff uncertainty 

Meanwhile, legal uncertainty surrounding tariffs added to investor anxiety. A U.S. appeals court temporarily allowed Trump-era tariffs to remain in place, reversing a trade court’s earlier decision. 

The administration is also weighing a 15% duty for up to 150 days under the Trade Act of 1974.

Despite the geopolitical and legal headwinds, investors found Optimism in cooling inflation. The Fed’s preferred inflation gauge—the core Personal Consumption Expenditures index—rose in line with forecasts in April, helping temper fears of further rate hikes.

Health care was the only S&P 500 sector to post a monthly loss, down nearly 6%. All other major sectors finished May in the green, buoyed by easing inflation and strength in tech.

Markets head into June with gains intact, but trade policy remains a looming risk.