June 1, 2026

Despite ongoing geopolitical uncertainty in the Middle East, U.S. equity markets reached new highs during May. While periods of strong market performance can sometimes be accompanied by increased volatility, maintaining a long-term perspective remains important. History has shown that staying invested through market fluctuations is often a prudent approach for long-term investors.

We encourage clients to let us know of any upcoming large expenses so that anticipated cash needs can be incorporated into portfolio management and appropriate liquidity can be maintained over the next 6 to 12 months.

Artificial Intelligence (AI) continues to attract significant investment across many industries. While companies are spending heavily to develop and deploy AI technologies, the long-term economic benefits and productivity gains remain uncertain. As with many transformative technologies, some businesses may benefit substantially, while others may face challenges in generating an adequate return on investment. We continue to monitor these developments and their potential impact on investment opportunities.

Bond yields remain modestly elevated, and the timing and magnitude of future Federal Reserve policy changes remain uncertain. While bonds may not offer the same growth potential as equities, they continue to play an important role in diversified portfolios by helping manage risk and providing income.

The labor market remains resilient, with unemployment at 4.3% and job growth exceeding expectations. Prior-month employment figures were also revised upward, reflecting continued strength in the broader economy.

Year-to-date, the Dow Jones Industrial Average, S&P 500, and NASDAQ have returned 3.64%, 5.50%, and 5.48%, respectively. The 10-year and 2-year U.S. Treasury yields currently stand at 4.45% and 3.99%.