May Market Summary - What You Need to Know!

Performance

• Canadian and U.S. stock markets experienced notable growth in May, thanks to easing tensions over tariffs between the U.S. and China.

• Canada’s main stock index had its biggest monthly gain since November 2024

• The S&P 500 and Nasdaq had their best month since November 2023

• Canada’s benchmark index was 5.4% higher in May, as all 11 underlying sectors were positive during the month.

• The gain was led by industrials and information technology, rising 8.8% and 8.0%, respectively

• Small-cap stocks, as measured by the S&P/TSX SmallCap Index, rose 7.0% for the month.

Fixed Income

• The U.S. dollar depreciated 0.4% versus the loonie in May, lowering returns of foreign markets from a Canadian investor’s standpoint

• U.S.-based stocks, as measured by the S&P 500 Index, gained 5.7% in May

  • Nine of the benchmark’s underlying sectors were in the green during the month, with information technology leading the gains with a 10.4% return.

• International stocks, as measured by the FTSE Developed ex-US Index, were up 4.1% during the month, while emerging markets rose 3.3%.

• Canadian investment grade bonds, as measured by the FTSE Canada Universe Bond Index, remained flat during the month

• Key global investment grade bond benchmark lost 0.8%

• Global high-yield issues gained 1.3%

Commodities

• Natural gas prices rose 3.6% during the month, while the price of a barrel of crude oil gained 4.4%

• Copper and silver had a positive month, rising 2.6% and 1.5%, respectively, while gold fell 0.9%

Inflation

• Inflation in Canada came in at 1.7% year-over-year in April.

  • The deceleration was due to gasoline prices tumbling 18.1% y/y as the consumer carbon price was removed.

• The Canadian economy added 7,400 jobs in April, as the nation’s unemployment ticked up to 6.9%.

• The Canadian economy easily topped expectations in the first quarter of 2025, advancing 2.2% quarter/ quarter annualized. GDP growth was entirely driven by inventory building and healthy export gains.

• U.S. nonfarm payrolls grew by 177,000 in April, and the unemployment rate remained at 4.2%

Information and articles provided by iA Private Wealth

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This blog was prepared by Alison Cannell, for the benefit of Alison Cannell, Financial Advisor with Cannell Wealth Management Inc., a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this blog comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.

The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the Fund Fact sheet or prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.