May 2025 Market Recap

The month of May was surprisingly good for stocks. Again, the action was dictated by hopes and fears over U.S. tariffs. There was news that China and U.S. had come to an agreement and that tariffs would be reduced between those two countries. Also, the framework of a deal between the U.K. and the U.S. offered hope of reduced tariffs. Stocks and bonds rallied most of the month on those two items and hope for more. Both the U.S. and Canadian stock markets increased close to 4%.

There was also hope that more tariffs would be eliminated when a decision from the U.S. Court for International Trade ruled that many of the tariffs exceeded the President’s authority. However, that was quickly dashed, when an appeals court allowed them to continue until an appeal is heard. And the last few days of the month showed some weakness, as signs of strain between the Chinese and U.S. governments showed that a deal may be harder to come by. Also, over the last weekend of the month, increased tariffs on steel and aluminum were announced. So, the on-again-off-again trade war continues.

Disclaimer:

Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, Michael Stott, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment