Markets bounced back in May, with U.S. equities ending a three-month losing streak and the Magnificent 7 delivering their best monthly gains in two years. U.S. equities have rebounded from the recent selloff, pushing the S&P 500 back into positive territory with a 1.1% gain on the year. After a string of stellar months, international equities have outperformed U.S. equities year-over-year, boosted by a weaker dollar. In fixed income, corporates outpaced Treasuries as spreads narrowed, and short duration performed well despite a sharp 30 basis point rise in the 2-year Treasury yield. Meanwhile, focus shifted from tariffs to fiscal concerns, as President Trump’s “One Big Beautiful Bill” stoked debate over national debt, driving inflation expectations, interest rates, and U.S. dollar volatility higher.