May was not a very good month for global financial markets, given the escalating trade tensions between US and China. SPX fell 6.6% in May 2019, the worst return for this month since seven years.

Among the 11 S&P 500 groups, only one – that of real estate – experienced a boost, but that was a result of the yield on the 10-year Treasury notes falling to a 20-month low. Semiconductor companies trading on the S&P 500 with an exposure to Chinese markets suffered the steepest decline last month, most likely over the Huawei blacklisting row.

At the start of the new trading week, SPX is trading at a little above 2750. Analysts expect volatility to reign in stock markets until some positive news regarding trade talks between US and China emerge.