The major indexes ignored the adage of 'Sell in May and Go Away' for the third consecutive year, finishing the period at new record highs, led by parabolic gains in semiconductor and AI-related companies. The different indexes initially pulled back as tensions between the U.S. and Iran escalated, but investors quickly bought the dip as a fragile cease fire held. As a result, the S&P 500, NASDAQ, NASDAQ-100 and Russell 2000 were all able to reach new record highs. A better than expected employment report reinforced confidence in the resilience of the labor market, prompting another leg higher in equities. Gains were led by the Technology (XLK), Consumer Discretionary (XLY), and Materials (XLB) sectors. From there, momentum began to fade as rising inflationary pressures and geopolitical concerns tempered enthusiasm surrounding the AI-driven rally...

Click HERE to get the full story in our monthly On The Edge.