Finance

Technological leaders like Dell Technologies and Micron Technology experienced massive monthly gains of 33% and 88%, respectively, as infrastructure spending for AI accelerated. This concentration in chipmakers has driven market dispersion to extreme levels, causing the technology sector to significantly outperform broader indexes.

Following the confirmation of Kevin Warsh as the new Federal Reserve Chair, policymakers are considering removing their easing bias as headline inflation accelerated to 3.8%. Although interest rates remained at a target range of 3.5%–3.75% in May, futures markets are now pricing in a potential shift toward tighter monetary policy later in the year.

Renewed hopes for a ceasefire extension between the U.S. and Iran led to a sharp drop in crude oil prices, which helped bolster investor appetite for risk. Brent crude fell roughly 20% over the course of May, providing a counterbalance to the previous energy-driven inflationary pressures.