Market Commentary- May 15th, 2025

 
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Greetings,


I want to give you an update on what has been happening over the past week.  


At Musso Retirement Advisors, we are dedicated to keeping you constantly informed on the market changes as they occur. As a retirement planning specialist for the past 30 years, I have learned this can be valuable in to better understand your portfolio and the fluctuations which occur accordingly. 

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Thank you,

Bryan Musso

President

bryan@mussora.com

(Office) 504-322-4956


 
 

Market Commentary

The stock market’s strong rebound in 2026 showed signs of slowing last week, although major indexes remain close to record highs. The S&P 500 posted its seventh consecutive weekly gain, but the increase was a modest 0.2%, signaling that investors may be becoming more cautious after several weeks of strong momentum. The NASDAQ Composite and Dow Jones Industrial Average both finished slightly lower as markets gave back part of Thursday’s rally on Friday.


Key market developments included:


·        Treasury yields surged sharply higher as bond markets sold off following stronger-than-expected inflation reports.


·        The 10-year Treasury yield climbed to 4.59%, while the 30-year Treasury yield rose above 5% for the first time since 2007.


·        Inflation remained stubborn, with Consumer Price Index inflation reaching 3.8% annually and Producer Price Index inflation hitting 6.0%.


·        Futures markets now suggest roughly a 50% probability of another Federal Reserve rate hike by the end of the year.


Despite concerns surrounding inflation and interest rates, corporate earnings season continued to provide support for stocks. S&P 500 companies are on pace to deliver nearly 28% earnings growth alongside more than 11% revenue growth, marking one of the strongest earnings seasons since 2021. Technology and artificial intelligence-related companies remained market leaders, helping large-cap growth stocks outperform value-oriented sectors once again.


Another major focus for investors was the Federal Reserve leadership transition. The Senate confirmed Kevin Warsh as the new Federal Reserve Chair, replacing Jerome Powell after eight years in the role. Markets will closely watch Warsh’s first policy meeting in June for insight into how aggressive the Fed may remain in fighting inflation. 

 

Additional themes from last week included:


·        Large-cap growth stocks continued outperforming value stocks.


·        Small-cap stocks lagged significantly, falling more than 2% during the week.


·        Elevated oil prices and geopolitical tensions remain ongoing risks for markets.


·        Investors are increasingly concerned that higher borrowing costs could eventually pressure both consumers and corporations.


Looking ahead, markets appear caught between resilient economic fundamentals and growing interest-rate concerns. While the old Wall Street phrase “Sell in May and go away” reflects historically weaker summer returns, current conditions do not yet point toward a deep or prolonged market downturn. Instead, investors may see a period of consolidation, sideways trading, and increased volatility as markets reassess inflation, Federal Reserve policy, and the sustainability of recent gains.

 

Price          5/8-5/15      Year-to-Date

Dow Jones                     49,526         -0.11%                  3.63%

S&P 500                         7,409         0.17%                  8.70%

Nasdaq                          26,225         -0.06%                 13.07%


  Bloomberg, Ed Jones, John Hancock, JP Morgan, Monthly S&P Price Performance

 




 


 

 

 

 

 


 

 

Disclosure:

Data gathered from several sources such as but not limited to J.P. Morgan Asset Management, John Hancock Investment Management, FactSet, and Bloomberg.

 

Additional information, including management fees and expenses, is provided on our Form ADV Part 2. As with any investment strategy, there is potential for profit as well as the possibility of loss. We do not guarantee any minimum level of investment performance or the success of any portfolio or investment strategy. All investments involve risk (the amount of which may vary significantly) and Second Line Capital recommendations will not always be profitable. The underlying holdings of any presented portfolio are not federally or FDIC-insured and are not deposits or obligations of, or guaranteed by, any financial institution. Past performance is not a guarantee of future results.

 

Investment advice offered through Musso Retirement Advisors, a DBA of Second Line Capital, LLC a Registered Investment Advisor.

 
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Metairie, LA 70002



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