Inflation pressures have been a minimal hindrance on the equity markets thus far, as many companies are passing along higher production and material costs to customers while still maintaining margins.
International equity markets, including developed and emerging, are recapturing momentum lost during the pandemic, elevating returns comparable to those in the U.S. markets.
Sectors leading the S&P 500 Index in May include energy, financials, industrials, and materials, representative of economic expansion as deemed by economists and analysts. Expansion in these sectors tend to influence other sectors as growth dynamics transition from industry to industry.
Sources: S&P, Bloomberg
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