Economic Update
Market Update: May 2026
Markets in April saw continued volatility but finished the month in positive territory. Much of the focus remained on higher energy prices and ongoing geopolitical tensions, which have kept inflation concerns ongoing and interest rates higher. While markets moved around day to day, the broader picture hasn’t changed dramatically as economic growth remains steady, employment is still decent, and corporate earnings have generally held up better than many expected earlier in the year.
The Federal Reserve continues to take a patient approach, holding rates steady on Wednesday as it watches how inflation and global developments evolve. While higher oil prices can act as a short-term headwind, they have not yet materially changed the long-term outlook. Periods like this can feel uncomfortable and we’re here to help you navigate these times. Markets tend to react quickly to uncertainty and then stabilize as more clarity emerges. As always, we remain focused on maintaining well-diversified portfolios and positioning for long-term opportunities rather than reacting to short-term noise.
Capstone Investment Financial Group