the jane market brief
April was loud, markets surging, geopolitics heating up, everyone a little wired. May showed up in a slightly wrinkled shirt and said: okay, but let's dial it back a touch.
Still a good month. Just with better manners.
So what actually happened?
In US, the Nasdaq* climbed 8%, the S&P 500* rose around 5%, and the Dow Jones* crossed 51,000 for the first time ever. New records, again.
Why? Still AI*. Still tech. Same story, same winners.
Meanwhile here in Australia, the ASX 200* gained a modest 0.85%.
The honest reason? Australia doesn't have the same concentration of big tech and AI companies that power US indices. Less exposure to the boom, less exposure to the drama. That's actually not the worst deal.
One notable exception wasMegaport* (ASX: MP1).
The Brisbane-based network company which helps businesses connect to AI and cloud infrastructure landed a series of massive contracts in May and its share price surged 70% in a single month. Yes, 70%. In one month.
And one for the curious: SpaceX is about to go public
Speaking of big moments, SpaceX, Elon Musk's rocket company, is preparing for what could be the largest IPO in history, targeting a valuation of around US$1.75 trillion.
Quick explainer if you need it: an IPO (Initial Public Offering) is when a private company opens its doors to public investors for the first time. Once it lists, anyone can buy or sell shares on the market.
The big story in the background: oil and Iran
Oil prices eased a little in May but they're still higher than before the conflict began. The situation between the US and Iran is still unresolved, with ceasefire talks going back and forth.
Why does this matter for you? Because every central bank on the planet is watching energy prices like a hawk. If oil stays high, inflation stays sticky. And if inflation stays sticky, interest rates may stay higher for longer.
Not great news for borrowers. Worth keeping an eye on.
One more thing
In May, the U.S. introduced a new Federal Reserve Bank chair.
Trump nominated Kevin Warsh. Which means… yes, there will be questions about whether the most powerful central bank in the world is about to feel some political pressure on interest rates.
Good or bad? Honestly, too early to say. But worth knowing.
what should you do with all of this?
Markets are still climbing. But the things that could slow them down - oil prices, a new U.S. Federal Reserve Bank chair and unresolved geopolitics are still very much in the picture.
Your job isn't to predict how it plays out.
It's to stay invested according to your plan, stay diversified, and not let the headlines make the decisions for you.
Until next month,
Julia Scott
CEO, Money by Jane
Glossary
NASDAQ 100: Top 100 U.S. non-financial publicly listed companies dominated by the technology and biotechnology sectors (e.g., Amazon, Google, Meta).
S&P 500: Top 500 large publicly listed U.S. companies.
Dow Jones: 30 major U.S. publicly listed companies representing a range of industries (Coca-cola, Nike, American Express…)
ASX 200: Top 200 companies publicly listed in Australia.
Megaport Ltd: Australian technology company in the ASX 200.
Artificial Intelligence (AI):Technology designed to perform tasks that normally require human intelligence.
Information provided by Money by Jane is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute financial advice nor financial product advice in any way. Remember, the value of any investment can go down as well as up. Before acting, you should consider seeking independent personal financial advice that is tailored to your needs from an appropriately licensed or authorised financial adviser. 