May Market Momentum, A Gloomy Wall Street, & Equity Index Annuities

The Money Wise guys kick off this week’s episode with a reflection on last week’s numbers from Wall Street. They report that the markets closed out May on a high note, with all three major indices posting solid weekly gains and even stronger monthly returns. The Dow rose 1.6%, the S&P 500 climbed 1.9%, and the NASDAQ led the charge with a 2% increase. For the month of May, the NASDAQ soared 9.6%, the S&P 500 jumped 6.2%, and the Dow finished up 3.9%.

The team goes on to highlight the second revision of Q1 GDP and the latest core PCE reading—formerly the Fed’s go-to inflation gauge. With year-over-year PCE now at 2.1%, the data suggests inflation is nearing the Fed’s 2% target, igniting debate about when rate cuts may finally happen. However, the media continues its gloom-heavy narrative, with financial figures like Jamie Dimon casting shadows of stagflation and looming bond market stress, despite signs of economic resilience. Later in the show, the team does a deep dive into proper portfolio construction, because how your investments are structured can make or break your financial goals. 

A Gloomy Wall Street

Despite the strong performance across the markets in May, Wall Street sentiment remains surprisingly downbeat. Financial media and major voices like Jamie Dimon continue to push cautionary narratives, raising concerns about stagflation, cracks in the bond market, and long-term economic risks. Even as inflation readings like the core PCE show progress toward the Fed’s target, the tone from many in the financial world leans more pessimistic than the data might warrant. It’s a reminder that headlines often lag reality, and that investors need to stay focused on facts, not fear.

In the second hour, the Money Wise guys discuss Equity Index Annuities. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.