• With the renewed escalation of the conflict between the United States and Iran, geopolitical risks across the Middle East have intensified significantly; the prospect of the Strait of Hormuz being closed coupled with rising tensions surrounding the Bab al-Mandab Strait has sparked major concerns within global energy markets and the international trade sector. These disruptions have contributed to a sharp rise in oil prices, fueling fears of increased transportation and production costs, while also exacerbating the uncertainty surrounding the global economic outlook.

• Recent economic data continued to reflect a mixed outlook for the U.S. economy; labor market conditions showed signs of moderation as non-farm payrolls declined from 129,000 to 57,000, while the unemployment rate improved slightly from 4.3% to 4.2%. Inflationary pressures showed further signs of easing, with inflation declining from 4.27 to 3.5% and the Producer Price Index (PPI) falling from 0.67 to -0.3%. Meanwhile, the Federal Reserve maintained a cautious approach, keeping interest rates unchanged at 3.75% for the sixth consecutive meeting.

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• Amid escalating geopolitical tensions, rising oil prices, and growing market uncertainty, Treasury yields have increased while bond prices have declined, reflecting expectations of persistent inflationary pressure and tighter monetary conditions. Expectations of higher interest rates have reduced demand for existing bonds as investors reassess the attractiveness of fixed-income assets. Meanwhile, continued energy-market risks and economic uncertainty are weighing on high-risk assets, particularly technology and growth sectors, contributing to increased volatility across financial markets.

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With an increase rate reaching 9.96%

The energy sector emerged as the best-performing sector during the month, gaining 9.967, supported by the sharp rise in oil prices following renewed Middle East tensions and supply disruption concerns. The sector outperformed broader markets as investors increased exposure to energy companies expected to benefit from higher crude prices.

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• With the return of war, escalating geopolitical tensions across the Middle East-and the accompanying disruptions to oil shipments through the Strait of Hormuz-have become a major concern for global financial markets. These developments threaten to trigger a sharp rise in energy prices and exacerbate fears of renewed supply chain disruptions, thereby driving up global production and transport costs and heightening uncertainty regarding the global economic outlook.

• Recent economic data continued to present a mixed picture. Labor market conditions remained relatively stable, with unemployment holding steady and job creation moderating only slightly. However, inflation accelerated further, driven largely by higher energy costs, while producer price pressures remained elevated despite some easing in business sentiment. Central banks maintained a cautious stance, keeping interest rates unchanged as they balanced persistent inflation risks against signs of moderating economic growth.

• Amid mounting inflationary pressures and rising geopolitical risks, investors have increasingly turned toward defensive assets while reducing their exposure to risk-sensitive sectors. Financial markets have experienced a fresh wave of volatility as analysts warn that the ongoing war—which is driving up oil prices-and slowing economic growth could push the global economy into a prolonged period of “stagflation,” a state characterized by high inflation, weak growth, and heightened financial uncertainty.

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With an increase rate reaching 9.45%

The industrial sector emerged as the best performing sector during the month, rising 9.45%, supported by stronger

9.45%，

performance in industrial and value-oriented companies as investors rotated away from volatile growth sectors. The sector outperformed broader markets, in line with the Dow Jones strength, although gains remained limited by rising geopolitical risks and economic uncertainty.

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• Escalating concerns over sovereign debt levels in several major economies have become a central focus for global markets throughout May, adding new pressure to an already fragile economic environment. Rising government borrowing costs, combined with weaker fiscal outlooks and persistent geopolitical uncertainty, have increased fears that debt sustainability risks could weigh heavily on future global growth and financial stability.

• Central banks maintained a cautious approach during the month, keeping interest rates elevated as inflation pressures remained stubborn in key sectors such as energy, housing, and services. Although labor markets continued to show resilience in some regions, higher financing costs and tighter credit conditions contributed to slower consumer demand and reduced corporate investment activity.

• With growing concerns about debt burdens and slowing economic growth, investors have turned to safer assets and reduced their exposure to higher-risk markets. Financial markets have experienced renewed volatility, while analysts warn that continued weak growth, high debt levels, and persistent inflation could increase the likelihood of stagflation, potentially leading to a global crisis.

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With an increase rate reaching 14.117

The technology sector emerged as the best performing sector during the month, rising 14.11%, driven by continued strength in major technology companies, solid earnings performance, and sustained investor interest in growth and artificial intelligence-related themes, although gains were notably lower than April’s 19.98% surge amid broader market caution and rising macroeconomic uncertainty.,

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• Continued military tensions in the Middle East and the blockade around the Strait of Hormuz have driven up energy prices over the past month, reviving inflationary pressures just as major economies were beginning to show signs of stabilization. The rising costs of oil and transportation have forced markets to reassess their inflation and growth forecasts.

• The Federal Reserve kept interest rates unchanged, relying on continued price pressures despite a relatively resilient labor market. Unemployment remained low, but consumer spending and business borrowing showed early signs of slowing under tighter financial conditions.

• With growth forecasts revised downwards, investors adopted a more cautious stance. Financial markets experienced increased volatility, pressure on growth stocks, and renewed concerns about stagflation, as slowing growth and rising inflation continue to dominate the global outlook.

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With an increase rate reaching 19.98%

The technology sector emerged as the best performing sector in April, rising 19.987, driven by strong gains in major technology companies, improving investor sentiment toward growth stocks, and renewed optimism around earnings and artificial intelligence-related demand.

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• The military escalation in the Middle East and the closure of the Strait of Hormuz led to a sharp rise in energy prices, directly impacting global inflation data, which had remained “stable” above target levels.
  This energy sector shock complicated GDP growth forecasts, as rising fuel costs constitute a hidden tax on consumers and manufacturers.

• The Federal Reserve kept interest rates unchanged, citing concerns about persistent price pressures. The unemployment rate remained relatively low but showed signs of slowing, indicating that while the labor market is resilient, the opportunity for a soft landing is diminishing as higher borrowing costs increasingly weigh on business expansion.

• With GDP forecasts for the coming quarters lowered, global investors have adopted a more cautious approach. Financial markets have seen heavy selling of growth stocks and a decline in gold prices, as stable interest rates and geopolitical instability have fueled fears of stagflation, leading to market uncertainty.

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With an increase rate reaching 12.61%

With the war in the Middle East continuing and the Strait of Hormuz remaining closed , through which 20% of the world’s oil supply and 25% of the world’s gas supply pass, prices have risen to high levels.

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