Sector Performance, Real Estate Market, and Consumer Sentiment
- The Rate Remains – The May 2025 unemployment rate remained unchanged at 4.2%. Total nonfarm payroll increased by 139,000, specifically in the health care, leisure and hospitality, and social assistance sectors, while jobs in the Federal government continued to decline (source: U.S. Bureau of Labor Statistics).
- Star Sectors – The health care sector was the only sector with a decline in May 2025, falling by 5.57%. The sectors with the best performance in May 2025 were technology with a 9.97% increase, industrials with a 8.84% jump, and consumer discretionary with a 8.38% gain (source: Y Charts).
- For Sale – According to recent Redfin data, there are 33.7% more sellers in the market than buyers, which is the largest margin that sellers outnumbered buyers since 2013 (source: Redfin).
- Freed Funds – The Wells Fargo $1.95 trillion asset cap was lifted in early June 2025. The U.S. Federal Reserve imposed punitive measures on Wells Fargo in 2018, restricting balance sheet growth until the bank could address governance and compliance concerns. As a result, S&P Global upgraded its outlook on Wells Fargo from “stable” to “positive” (source: Reuters).
- Poor Productivity – In Q1 2025, nonfarm business sector labor productivity declined by 1.5%. Output decreased by 0.2% while hours worked increased by 1.3%. This is the first decline in labor productivity since Q2 2022. These numbers were revised from the original 0.8% decline released in May 2025 (source: U.S. Bureau of Labor Statistics).
- A Muddled May – UnitedHealth Group had a tough May 2025, with a 26.6% share price decline. This comes after The Guardian, a newspaper, accused UnitedHealth of paying facilities that helped the company gain Medicare enrollees and reduce hospitalizations. CEO Andrew Witty also decided to step down from the company for “personal reasons” in May 2025 (source: CNN).
- Slumping Sentiment – The U.S. Index of Consumer Sentiment fell to 52.20 in May 2025, which is the third lowest level on record. The two lowest records were May 1980 at 51.70 and June 2022 at 50.00 (source: Y Charts).
- Stablecoin Surge – Circle Internet, the issuer of Stablecoin, saw its shares double in its New York Stock Exchange debut. Circle Internet opened at a trading price of $69 per share, creating a valuation of nearly $18 billion (source: Reuters).
- Energy Info – A new study by The Pew Research Center found that nuclear power has seen an increase in support in recent years, while wind and solar power have become less popular among Americans. Similarly, Americans are more likely to buy a hybrid vehicle compared to an electric vehicle (source: Pew Research Center).
- Few Fans – The first game of the NBA Finals between the Thunder and the Pacers had 8.91 million viewers, which is the least-watched opener outside of COVID-era games since the start of Nielsen tracking in 1988 (source: Yahoo Sports).
This newsletter is provided for informational purposes only and does not constitute investment advice or a recommendation regarding any specific product or security. Past performance is not indicative of future results. You cannot invest directly in an index. All references to tax or legal matters are provided for informational purposes only. You should consult your legal or tax professional regarding your specific situation. All investing is subject to risk, including possible loss of principal.
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