
mBaer Insights 05/25
Markets in May were anything but quiet. What began with elevated anxiety fueled by escalating trade rhetoric and surging bond yields, quickly pivoted into a broad-based rally, as investors responded to a series of headline-driven shifts. At the center stood President Trump, whose abrupt softening on China tariffs and temporary delay of punitive measures against the EU triggered a powerful reversal in sentiment. Equities surged, led by the U.S., as fears of a global trade war gave way to hopes of renewed negotiation. Robust corporate earnings and a rebound in consumer confidence added to the momentum, helping to offset concerns over fiscal sustainability and persistent inflation pressures. The result was a market driven more by political headlines than economic fundamentals. Yet one that delivered a decisive recovery from April’s lows.